Chemical sourcing startup Scimplify closes $25M investment

Funding giant Hitachi Ventures led a $25 million investment in Scimplify, a startup aiding companies in sourcing the chemicals for their products. Joining the round were customers Henkel AG and Teknor Apex Inc. The startup, now valued at $250 million, saw a $100 million increase in valuation from last year. Scimplify expects to become profitable next month, contributing to the valuation jump.

Scimplify simplifies the chemical sourcing process, which often involves developing a production workflow from scratch and assisting manufacturers in implementing it. The Bengaluru-based company operates an online marketplace connecting companies with scientists who can help with manufacturing processes. Scimplify provides access to academic institutions, commercial labs, and its own 50-person research team. An AI tool called Scinode speeds up the development process.

The chemical industry has standard methods for many materials, but they don't always meet customer requirements. For instance, a chipmaker may want a certain ingredient at a 10% lower cost than the industry average. Scientists can modify manufacturing workflows by reducing or adding materials or changing chemical reactions. Once ready, Scinode automatically finds a plant for the process, considering factors like equipment, production capacity, and regulatory certificates.

Scimplify speeds up the initial setup by sending engineers to the plant and collecting production quality and regulatory compliance data. The company's revenue is growing, with annualized run rate tripling to over $200 million in the past year. About 30% of revenue comes from the U.S., where Scimplify plans to expand following the funding round. The company aims to double its annualized revenue to $400 million next year.