Scimplify Raises $9.5M in Series A - 3one4 Capital Reinforces Commitment

Scimplify, an R&D focused manufacturing platform that streamlines specialty chemical procurement and production, has secured $9.5 million in Series A funding, led by Omnivore and Bertelsmann India Investments. 

3one4 Capital, having led the seed round last year, has also participated in this round. We’re happy to reinforce our commitment to Scimplify's science-first ethos and technology-driven fulfilment discipline.

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Unlocking India’s Specialty Chemicals Potential

Known for its high-value, low-volume production, the specialty chemicals market encompasses fine chemicals, polymers, adhesives, and more. Currently valued at approximately $850 billion, the industry is expected to grow steadily over the next five years, largely driven by demand from the agrochemicals and pharmaceuticals sectors. 

India's specialty chemicals market, valued at $180 billion, is expected to reach $330 billion by 2025, growing at a CAGR of 12%. This growth rate outpaces the global chemicals industry's projected 6% growth. India, with its favourable government policies and cost-competitive manufacturing environment, is a highly attractive alternative to China for specialty chemicals production.

However, the industry faces significant challenges, particularly in R&D expertise and a fragmented supply chain. Buyers often struggle with sourcing raw materials, dealing with order disruptions, inconsistent quality, and limited product options. Scimplify addresses these challenges, providing end-to-end support across the product lifecycle, bolstered by in-house scientists dedicated to R&D and manufacturing excellence.

What Sets Scimplify Apart

• R&D Driven Innovation: Scimplify places a strong emphasis on research and development, focusing on creating new and innovative chemistries that address customer needs and resolve supply chain constraints.
• Made-to-Order Focus: The platform caters to the made-to-order segment, delivering high-value chemicals precisely mapped according to chemistry, process, and scale.
• Empowering Midsize and Small Manufacturers: Scimplify empowers midsize and small manufacturers by providing alternative formulations and valuable engineering expertise, helping them enhance utilisation and offer advanced chemical solutions.

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Leveraging India's Manufacturing Powerhouse

India is home to over 10,000 underutilised small to midsize factories with specialised chemistry expertise. Scimplify integrates these factories into its platform, leveraging in-house R&D to develop key chemical technologies that meet international standards. By combining proprietary technologies with existing manufacturing capacities, Scimplify offers a seamless and cost-effective solution for specialty chemicals production, ensuring end-to-end visibility and quality control. The company has already onboarded 150 factories across 10 countries.

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Scimplify also engages in cross-border trade with countries, including New Zealand, the UAE, Egypt, Vietnam, Jordan, and Taiwan. Given the increasing demand and shifts in global supply chains away from China, the company believes it is strategically positioned to cater to a substantial customer base in India and across the globe.

Salil Srivastava, Co-Founder of Scimplify, stated, "The backbone of Indian specialty chemical manufacturing are mid-sized factories that have built in-depth, chemistry specific expertise over decades. However, there is significant available capacity to double the national output in the next 5 years with the given infrastructure. Scimplify brings together unique products to these factories using cutting edge R&D along with consistent demand from  global customers to utilize these capacities and provide a tech-enabled, full-stack offering to the modern agile customer.''

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Value Chain Sustainability

Scimplify places sustainability at the core of its value chain, aligning with national priorities in social development and supporting the advancement of multiple Sustainable Development Goals (SDGs).

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Innovative R&D:
Scimplify’s research is deeply rooted in the 12 principles of green chemistry, with a strong emphasis on safety, efficiency, and minimising environmental impact. Each new chemical developed by the company represents a deliberate step towards enhancing sustainability.

Responsible Sourcing:
The company is dedicated to sourcing raw materials with the least environmental footprint, strictly adhering to sustainability criteria. This responsible sourcing strategy not only minimises ecological impact but also reinforces Scimplify's commitment to implementing sustainable practices throughout its supply chain.

Sustainable Manufacturing:
Scimplify's manufacturing processes are designed to reduce waste and lower energy consumption. Through the adoption of efficient and sustainable production techniques, the company ensures that its operations contribute positively towards meeting environmental goals.

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Scimplify will utilise the fresh capital to bolster its R&D efforts, expand its market reach to key customer segments, and scale operations to meet surging demand across multiple industries. With a remarkable 4x quarter-on-quarter revenue growth, Scimplify remains committed to R&D, profitability, and ESG compliance. 

3one4 Capital is excited to continue its partnership with Salil and Sachin. Scimplify’s scientific excellence, coupled with its focus on a high-value category positions it for industry leadership with the potential to evolve into an intellectual property-driven powerhouse.