Specialty chemicals platform Covvalent has raised $4.3 million in a seed round led by Nexus Venture Partners. Noted angel investors and founders such as Vishal Chaudhary (Co-founder, Zetwerk), Ramakant Sharma (Founder, Livspace), Rajesh Yabaji (Founder, BlackBuck), Rehan Khan (MD, MSD India Region), Jawaid Iqbal, Anubhav and Ankit Singh (Co-founders, Rupifi), and Kaushal Soparkar (Founder, Meghmani Group) also participated in the round.
Covvalent said it will utilise the funds to build its product and business teams and sharpen its technology tools to ensure a precise match between customer specifications and a supplier’s output. These tools also offer a best-in-class experience for cross-border commerce, including on-time delivery of products with complete visibility of the supply chain, the company said.
Anand Datta, Nexus Venture Partners, said, “The global supply chain for specialty chemicals is ripe for disruption – new production centres and more efficient supply chains will emerge, enabled by technology. In Sandeep and Arush, we see a unique mix of a tech-first approach supported by operational and domain expertise to exploit these opportunities uniquely.”
Founded in 2022 by Sandeep Singh (a Harvard Business School and IIT Kharagpur alum) and Arush Dhawan (an IIM-Ahmedabad and IIT-Kharagpur alum), the core team claims to have a strong specialty chemicals operating background and a deep understanding of the challenges.
Sandeep, Co-founder of Covvalent, said, “Covvalent is solving the problem of a fragmented ecosystem in the specialty chemicals space with a vision to be the most trusted partner for its buyers and their procurement needs. We plan to deliver solutions for our customers by integrating technology with strong on-ground operations, assuring timely delivery and quality.”
“To achieve our vision, we have adopted an approach of working with only specific suppliers – carefully selected and diligently audited, ensuring quality and continuous supply. As we scale, technology will be a key differentiator, enabling us to deliver a smooth buying experience, while bringing transparency in supply chain and automating quality controls,” said Arush.
According to the startup, the global specialty chemical market is worth an astounding $800 billion and growing at around 6% annually. New products, trade wars, and COVID challenges have necessitated developing supply chain resilience and alternate sources of procurement.
