Scimplify, a startup that helps companies source the chemicals they use to make their products, has raised $25 million in funding.
TechCrunch reported today that the Series C round was led by Hitachi Ventures. It was joined by two Scimplify customers: consumer goods giant Henkel AG and Teknor Apex Inc., a major supplier of server cable materials. A number of returning investors chipped in as well.
Scimplify, officially Cocreate Global Technologies Pvt Ltd., is now valued at $250 million. That’s a $100 million increase from last year. One likely factor behind the valuation jump is that Scimplify reportedly expects to become profitable next month.
Sourcing a new chemical involves much more than just finding a manufacturer that can produce it. In many cases, companies must also develop the necessary material production workflow from scratch. They then have to help the manufacturer implement the workflow, which often involves equipment upgrades.
Bengaluru-based Scimplify is working to simplify the task. It operates an online marketplace that connects companies with scientists who can help them develop manufacturing processes. Scimplify provides access to academic institutions, commercial labs and its own 50-person research team.
The platform automatically notifies research providers about projects that align with their capabilities. They can compete for contracts by placing bids. After a customer hires a lab, Scimplify uses a custom artificial intelligence tool called Scinode to speed up manufacturing process development.
The chemical industry has tried-and-tested methods for making many materials. However, those methods don’t always align with customer requirements. For example, a chipmaker may wish to source a certain processor ingredient at a 10% lower cost than the industry average. Meeting such goals requires scientists to modify manufacturing workflows by reducing the use of certain materials, adding new ones or changing chemical reactions.
Once a manufacturing process is ready, Scinode automatically finds a plant that can put it to use. The platform takes into account factors such as the facility’s equipment, its production capacity and its regulatory certificates. Scimplify speeds up the initial setup process by dispatching engineers to the plant. From there, its Scinode platform collects production quality and regulatory compliance data.
The company’s annualized run rate has reportedly tripled over the past year to more than $200 million. About 30% of Scimplify’s revenue comes from the U.S., where it plans to grow its presence following today’s funding round. The software maker will spend $7.5 million on the expansion and another $2 million to enhance Scinode.
Scimplify is reportedly pursuing those growth initiatives with the goal of doubling its annualized revenue to $400 million next year.