Scimplify Secures $5 Million in Funding Round

Scimplify, a Bengaluru-based company that provides a platform for sourcing and manufacturing specialty chemicals, is in the final stages of securing a fresh round of funding worth $5 million, according to industry sources familiar with the development. This new funding round comes just six months after Scimplify’s previous fundraising effort.

Omnivore Leads the Charge, Existing Investors Reiterate Confidence

Investment firm Omnivore is spearheading the $5 million round, demonstrating their belief in Scimplify’s potential. Notably, existing investors 3one4 Capital and Beenext are also expected to participate in this round, further solidifying their commitment to the company’s growth trajectory.

Building on a Strong Foundation: Previous Funding and Growth Strategy

In December 2023, Scimplify successfully raised $3.67 million in its seed funding round, led by 3one4 Capital and Beenext. During that round, the company outlined its ambitious expansion plans, targeting a presence in 20 countries and venturing into four new specialty chemical categories. Scimplify currently operates manufacturing facilities in Karnataka, Hyderabad, and Gujarat.

Valuation on the Rise: Reflecting Market Confidence

Industry sources anticipate the deal to be finalized soon, valuing Scimplify in the range of $20-25 million. This significant valuation increase underscores the growing market confidence in Scimplify’s business model and future prospects.

A Diverse Product Portfolio: Catering to Industry Needs

One of the factors attracting investors to Scimplify is its comprehensive product portfolio. The company caters to a variety of industries, including pharmaceuticals, personal care, and agrochemicals. Their offerings encompass a wide range of specialty chemicals, including emulsifiers, plant growth stimulators, biostimulants, adjuvants, and biofertilizers, as highlighted on their website.

Investor Spotlight: Omnivore Recognizes Potential in Agrochemicals

Sources suggest that Omnivore’s investment decision was particularly influenced by Scimplify’s strong presence in the agrochemicals sector. This aligns with Omnivore’s focus on impact investing and supporting companies that address sustainability challenges.

Ownership Structure: Co-founders Maintain Control

According to startup data platform TheKredible, 3one4 Capital currently holds a 17% stake in Scimplify, while Beenext possesses a 7% stake. Notably, the company’s co-founders, Salil Srivastava and Sachin Santhosh, collectively retain a significant shareholding of nearly 65%.

A Competitive Landscape: Scimplify Among Industry Leaders

Scimplify operates in a dynamic market with established players like Bengaluru-based Atomgrid and Covvalent. Atomgrid secured $1.2 million in its seed round earlier this year, while Covvalent raised $4.3 million in November 2022. This funding round will empower Scimplify to further solidify its position within the competitive landscape.

About Omnivore: Investing in Innovation and Sustainability

Founded in June 2023, Omnivore is an impact venture capital firm dedicated to fostering innovation in the agriculture, food, and climate sectors. Their third fund has already secured a first close of $150 million, earmarked for 25-30 new investments in early-stage companies. Some of their notable portfolio companies include DeHaat, Arya, Stellapps, Reshamandi, Ecozen, Aquaconnect, and Pixxel.