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Scimplifi Raises $3.67M to Transform the Specialty Chemical Industry with its Innovative End-to-end B2B Fulfilment Platform

December 7, 2023
5 mins

Scimplifi, optimising specialty chemical procurement and production, has secured $3.67 million in funding from 3one4 Capital and BEENEXT. Angel investors with deep expertise in the chemical industry and B2B commerce also participated in the funding round.

Co-founded by Salil Srivastava and Sachin Santhosh, Scimplifi is a B2B fulfilment platform that seamlessly integrates the entire product life cycle, from contract research to commercial manufacturing of chemicals across diverse industries, including pharmaceuticals, personal care, and agrochemicals. Users benefit from an in-depth technology map encompassing manufacturing plants involved in diverse chemistries, enhancing the platform's ability to seamlessly align buyer demand globally with the most suitable factories and formulations.

From Concept to Market: Scimplifi's Vertically Integrated Approach in Specialty Chemical Solutions

The specialty chemicals market, known for high-value, low-volume production, spans fine chemicals, polymers, adhesives, and more. Valued at ~$850 Billion, the industry is expected to grow steadily over the next five years, driven by demand from the agrochemicals and pharmaceuticals sectors. India is emerging as an attractive alternative to China for specialty chemicals production due to its favourable government policies and cost-competitive manufacturing environment.

The industry, however, faces two key challenges: a lack of R&D expertise and a fragmented supply chain. Buyers struggle with sourcing raw materials, order disruptions, inconsistent quality, and limited product options. Scimplifi addresses these challenges by providing end-to-end support across the product lifecycle, with access to in-house scientists for R&D and manufacturing expertise.

Here's what sets Scimplifi apart:

R&D-driven Innovation: Scimplifi prioritises research and development, focusing on new and innovative chemistries to address customer needs and solve supply chain constraints.

Made-to-Order Focus: Scimplifi caters to the made-to-order segment, providing high-value chemicals mapped as per chemistry, process and scale.

Empowering Midsize and Small Manufacturers: Scimplifi provides alternative formulations and valuable engineering expertise to midsize and small manufacturers, enabling them to improve utilisation and offer advanced chemical solutions.

Global Expansion and Drive for Innovation

Scimplifi plans to use its recent capital infusion to strengthen core teams across business, value engineering, and technology. The company aims to enhance expertise in emerging chemistries while expanding manufacturing capabilities in India and key global markets. Within the next year, Scimplifi intends to shift to a 60% export-oriented model, expanding its footprint to 20 countries and entering 4 new chemical categories. Furthermore, Scimplifi will establish laboratories in 3 additional categories to support ongoing research efforts.

"Specialty chemicals is an $800 billion global market that is extremely heterogeneous and fragmented. Globally, manufacturing supply chains are now shifting in India’s favor 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 ton scale while providing a world-class service. At Scimplifi, we aim to become a trusted, science-first platform from a concept in a lab to finished product manufacturing for our global customers," said Salil Srivastava, Co-founder and CEO, Scimplifi.

3one4 Capital Backs Scimplifi to Accelerate Innovation in the Specialty Chemicals Market

Scimplifi operates in a niche market within specialty chemicals, where its unique combination of technical expertise in R&D (value engineering) and manufacturing (process engineering) creates significant entry barriers.

The company’s strategic focus on a high-value category, coupled with its global expansion plans, positions Scimplifi for industry leadership with the potential to evolve into an intellectual property-driven powerhouse. Salil and Sachin, with a track record in scaling B2B businesses, are the right team to navigate the disruptive industry dynamics and capitalise on the large revenue opportunity in this market.

With its science-first ethos and technology-driven solutions, Scimplifi empowers businesses to accelerate their product development cycles, enhances supply chain efficiency, and ultimately delivers cutting-edge products to the market. Scimplifi’s commitment to scientific excellence and technological prowess places them well to reshape the future of specialty chemical sourcing and manufacturing.

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