Elchemy secures $5.6 million in funding Prime Venture Partners, others

November 27, 2024

Elchemy secures $5.6 million in funding Prime Venture Partners, others

Elchemy, a cross-border specialty chemical distribution platform, said it has raised $5.6 million (about Rs 47 crore) in a funding round led by early-stage venture capital firm Prime Venture Partners.

The round also saw participation from existing investor InfoEdge Ventures.

The Mumbai-based company said the funds will be used for building a team in the US, strengthening its tech leadership and investing in advanced supply chain visibility solutions.

“So far, we have built a very inside sales-driven engine, which means it was a low-cost engine,” cofounder Hardik Seth told ET. “We used to rely on cold calling and cold emailing from India, and clients would visit our website to place orders. However, we are now hiring on-the-ground sales teams in North America, which will be our first sales team outside India. This is where some of the funds will be used. Additionally, we are heavily investing in technology.”

Founded in 2021 by Seth and Shobhit Jain, the startup helps international buyers in discovering and sourcing specialty chemicals from India and Southeast Asia. It simplifies the process of finding suppliers, ensures product quality and oversees end-to-end fulfilment for specialty chemicals.

“We continue to focus solely on exports, helping small and mid-sized chemical manufacturers in India expand their presence internationally,” Seth said.

The company serves more than 80 clients worldwide, enabling exports to about 50 ports across the globe.

“Our primary focus is the North American market, but we also have customers in the Middle East, Europe and Latin America…These are all business-to-business (B2B) clients, which means they are either personal care and cosmetic manufacturers or demand aggregators who serve these manufacturers,” said Seth.

The company aims to expand its proprietary technology stack to include quality management systems, real-time tracking features and automated documentation processes.

“Our plan is to acquire around 100 customers from North America within the next year or so,” Seth said.

The company last raised $2 million in 2022 in a funding round led by InfoEdge Ventures, bringing its total funding to $7.6 million.

Commenting on the investment, Amit Somani, managing partner at Prime Venture Partners, said, “Elchemy’s unique distribution-first approach in the highly fragmented specialty chemicals market sets them apart. The team has built a remarkable technology platform that not only solves critical pain points for international buyers but also enhances operational efficiency.”

Kitty Agarwal, partner at InfoEdge Ventures, said, “China-plus-one sourcing strategy for global buyers in specialty chemicals has become very much a reality now and Elchemy, as one of the first movers, is in a strong position to capitalise on this and become a global leader out of India over the next few years.”

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