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Political and economic factors ranging from tariffs to tensions with China are forcing the global chemicals industry to rethink its supply chain arrangements. One business hoping to benefit is Scimplify, which is today announcing it has secured $40 million of new investment in a Series B fundraising round.

"We're an asset-light specialty chemicals manufacturer," explains Sachin Santhosh, who co-founded the company with Salil Srivastava and Dheeraj Dhingra in India last September. "We work with businesses in highly critical industries such as life sciences, crop nutrition, cosmetics and industrial chemicals."

Scimplify's value proposition is built on three pillars: research and development (R&D), manufacturing and distribution. To deliver to its customers, it has built relationships with more than 200 chemicals manufacturers based across Asia. It uses these manufacturers to produce the orders it receives from customers - both in India and increasingly in Western countries.

In some cases, customers are seeking new suppliers for chemicals they have been buying elsewhere for some time. "A significant amount of chemicals manufacturing has traditionally been done in China, but that has become more problematic for many organisations," says Santhosh of the international trend to reduce reliance on Chinese exports. "There are many small, specialist manufacturers in India that offer good value, but it can be challenging to identify and contract with them."

In other instances, Scimplify's customers are seeking new types of chemicals, requiring manufacturers that can support innovation. Scimplify has its own R&D teams - comprising more than 50 scientists based in two labs - who can develop new compounds and formulas; it can then support manufacturers to begin producing these chemicals for its customers.

Importantly, Scimplify takes full responsibility for customers' orders. Santhosh and his co-founders had initially considered a marketplace approach, matching buyers with sellers, a model that has worked in business-to-business contracting in many industries. "We quickly realised that in the chemicals sector, customers are looking for depth and technical expertise," he says. "Otherwise, you're simply a trader."

Scimplify's decision to invest in these capabilities - the name is intended to signify "science simplified" - has been instrumental to its success, the founders believe. From a standing start less than 18 months ago, the company's sales have grown quickly, with the business now targeting annualised revenues of $100 million within the next 12 to 15 months. It continues to work closely with customers in India, but has also expanded its international sales, supplying chemicals to customers in 16 countries worldwide.

The company's plans for the rest of this year include doubling down on international expansion, largely through investment in on-the-ground operations in countries such as the US, Japan and the United Arab Emirates. It also intends to make further additions to its R&D teams.

"Global supply chains are shifting," Santhosh adds. "Specialty chemicals 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."

Investors in the company are backing this thesis. Today's fundraising is led by Accel and Bertelsmann Investments, with participation from UMI and existing investors including Omnivore and 3one4 Capital.

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

The Series B round takes the total amount of money raised by the company since its launch to $54 million.