SUMMARY
- Elchemy has bagged $5.6 million in a fresh funding round led by Prime Venture Partners.
- The company plans to utilise these funds in expanding its team in the US.
- Existing backer InfoEdge Ventures also contributed in the round.
Cross-border specialty chemical distribution platform Elchemy has bagged $5.6 million (approximately Rs 47 crore) in a fresh funding round led by Prime Venture Partners, a leading early-stage venture capital firm. Existing backer InfoEdge Ventures also contributed in the round.
The company plans to utilise these funds in expanding its team in the United States, enhancing its tech leadership, and investing in advanced solutions for supply chain visibility.
Established in 2021 by Seth and Shobhit Jain, Elchemy assists global buyers in finding and procuring specialty chemicals from India and Southeast Asia. It streamlines the supplier search, guarantees product quality, and manages the entire supply chain for specialty chemicals.
“So far, we have built a very inside sales-driven engine, which means it was a low-cost engine,” cofounder Hardik Seth shared.
He added, “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.”
“We continue to focus solely on exports, helping small and mid-sized chemical manufacturers in India expand their presence internationally,” Seth said.
The Mumbai-based company has a client base of over 80 worldwide, facilitating exports to approximately 50 ports around the world.
“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.
“Our plan is to acquire around 100 customers from North America within the next year or so,” he added.
Its goal is to enhance its proprietary technology by adding quality management systems, real-time tracking capabilities, and automated documentation processes.
In 2022, Elchemy last raised $2 million led by InfoEdge Ventures, increasing its total funding to $7.6 million.
Amit Somani, managing partner at Prime Venture Partners, commented, “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.”
