B2B speciality chemical procurement and production platform Scimplifi has raised $3.67 Mn from institutional investors 3one4 Capital and BeeNEXT. The round also saw participation from some angel investors.
The startup will utilise the funds to fuel expansion plans, strengthen its core teams and enhance expertise in emerging chemistries. The capital will also be deployed to shore up Scimplifi’s manufacturing capabilities across the country and key global markets.
“At 3one4 Capital, we are excited to partner with Salil Srivastava, Sachin Santhosh, and the team at Scimplifi…,” 3one4 Capital said in a statement.
Commenting on the development, Scimplifi cofounder and CEO Salil Srivastava said, “Globally, manufacturing supply chains are shifting in India’s favour like never before. However, it is complex to bring together the R&D across multiple chemistries, compliances across different markets, and manufacturing from milligram to metric tonne scale. We aim to become a trusted, science-first platform from a concept in a lab to finished product manufacturing.”
According to the investment firm, the startup’s strategic focus continues to be on a high-value category and global expansion. This, as per 3one4 Capital, positions Scimplifi for industry leadership with the potential to evolve into an intellectual property-driven powerhouse.
Meanwhile, the startup is eyeing to shift to a 60% export-oriented model by 2024-end and plans to expand its operations to 20 countries and four new chemical categories. It also plans to add labs spanning three more categories to ramp up research.
Founded in 2023 by Srivastava and Sachin Santhosh, Scimplifi is a full-stack B2B fulfilment platform that helps businesses procure and produce speciality chemicals transparently and efficiently. The startup claims to integrate the entire chemical product life cycle – from research to commercial manufacturing – and caters to industries such as pharmaceuticals, personal care, and agrochemicals.
With an in-house engineering team, the company offers its clients a tech-enabled system that offers visibility into the entire supply chain process. The startup competes with the likes of marketsaltz, BMLS Chemtech, and Briti Scientific.
The funding announcement has come amid a growing investor interest in the B2B startup space. In October, B2B vendor management startup Bizongo secured $50 Mn as part of a Series E funding round led by Zurich-based PE firm Schroder Adveq.
Last month, B2B ecommerce unicorn Zetwerk secured $120 Mn in its Series F funding round led by Avenir Growth Capital.
The push for B2B has largely been driven by higher order values, a positive margin profile, the ability to turn profitable early and the burgeoning size of the B2B market itself. The capital is also trickling as companies move their supply chains away from China to India led largely by the Centre’s lucrative production-linked incentive schemes for manufacturing.
A report by Avendus claims that the homegrown B2B space could see investments worth nearly $12 Bn pouring into the segment. Besides, the investment management company expects India to mint 10-12 unicorns in the B2B segment over the next five years.
The post Scimplifi Secures $3.6 Mn From 3one4 Capital & BeeNEXT To Streamline Procurement Of Specialty Chemicals appeared first on Inc42 Media.
