Scimplify secures USD $40m to transform chemical industry

Scimplify has announced the completion of a USD $40 million Series B funding round aimed at enhancing its specialty chemicals manufacturing platform.

The latest funding round, which was co-led by Accel and Bertelsmann, also saw participation from UMI and existing investors including Omnivore and 3one4 Capital.

This development raises Scimplify's total funding to USD $54 million, following earlier seed and Series A rounds. The fresh capital injection will support Scimplify's international growth strategy, as the company currently exports to 16 countries and seeks to expand into additional geographic markets and industry segments.

Founded in mid-2023 by Salil Srivastava, Sachin Santhosh, and Dheeraj Dhingra, Scimplify offers a unique approach to the manufacture of specialty chemicals.

The company integrates scientific expertise with a broad network of over 200 specialized manufacturing plants located in low-cost regions. This model enables Scimplify to offer a 'plug and play' solution for clients, managing everything from research and development (R&D) to specialized production without the capital investment and complexity that typically accompany traditional manufacturing methods.

Sachin Santhosh, Co-Founder at Scimplify, highlighted the shifting dynamics in global supply chains, saying, "Global supply chains are shifting like never before. For decades, specialty chemical manufacturers have invested millions in facilities that can only produce a handful of compounds, often running at partial capacity while lacking R&D capabilities."

'This creates a paradox: excess capacity alongside supply shortages. We've flipped this model, connecting our scientific teams with hundreds of manufacturing plants to create a responsive ecosystem that can adapt as market needs shift."

As countries work to secure their supply chains and minimise dependency on single regions, Scimplify's model offers a timely alternative.

The approach allows companies, particularly in the US, which were reliant on Chinese supply chains for specialty chemicals, to access alternatives from India, thus supporting innovation and building more resilient supply networks.

The ongoing transformation in the specialty chemicals sector is significant, and Scimplify is well-positioned to benefit from these changes. The company now caters to major markets including the US, Europe, and Japan, serving industries such as life sciences, crop sciences, and industrial chemicals. Scimplify's competitive edge lies in its ability to swiftly transition between different chemical processes and scale production in response to customer demands.

Sachin Santhosh also noted, "Each specialty chemical requires significant scientific know-how and R&D investment."

"We've built a model that brings together the best scientific minds with hundreds of highly specialized manufacturing plants, creating a chemistry powerhouse that can tackle virtually any chemical challenge across critical industries."

Rachit Parekh, Principal at Accel, commented on the investment, noting the critical juncture faced by the global supply chain for specialty chemicals and Scimplify's potential for innovation and growth.

Parekh stated, "The global supply chain for specialty chemicals is at an inflection point. Traditional manufacturing supply chains lack the flexibility required in today's geopolitical environment as well as the rapid changes in end customer requirements. Scimplify is building an R&D led global manufacturing network which allows for flexibility coupled with innovation."

Rohit Sood, Partner at Bertelsmann India Investments, echoed the sentiment, expressing excitement over the continued investment in Scimplify following their initial stake last year.

"We are excited to significantly double down on our commitment to Scimplify, after our initial investment last year," he said. "Their execution on the ground has been among the best we've seen, driving not just impressive topline growth but also a rapid multi-country export scale-up and the establishment of a cutting-edge R&D facility in Hyderabad."

Scimplify plans to use the new funding to further expand its international presence and introduce new industry segments by leveraging enhanced R&D capabilities. The company aims to play a crucial role in the ongoing changes in global chemical manufacturing, striving to develop a more resilient and responsive chemical industry infrastructure.