Cross-border specialty chemical distribution platform Elchemy raises $5.6 million in funding

Mumbai-based Elchemy, a tech-enabled cross-border specialty chemical distribution platform, announced it has raised $5.6 million in a Series A funding round.

The round was led by Prime Venture Partners, with participation from InfoEdge Ventures.

The startup plans to use the raised capital to establish a U.S.-based team, strengthen its tech leadership, and invest in advanced supply chain visibility solutions.

Revolutionizing the specialty chemicals market

Founded in 2021 by chemical engineer Hardik Seth and software developer Shobhit Jain, Elchemy addresses challenges in the $800 billion specialty chemicals market through its technology-first approach.

Elchemy provides end-to-end solutions for sourcing specialty chemicals from India and Southeast Asia. Its platform simplifies supplier discovery, ensures product quality, and oversees end-to-end fulfillment for specialty chemicals.

Jain explained, "Our technology platform is a core differentiator in the industry, which allows customers to procure, track orders and documents, get customer support — all from a single platform."

The startup claims that it supports over 80 global clients, with a significant focus on North America, while facilitating exports to more than 50 ports worldwide.

"Our primary focus is the North American market, but we also have customers in the Middle East, Europe, and Latin America," Seth said. "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."

Scaling operations and technology

Elchemy plans to use the new funding to hire its first on-the-ground sales team in North America, transitioning from its current inside-sales model. 

The funds will also support expansion of Elchemy's proprietary technology stack, focusing on quality management systems, real-time tracking capabilities, and automated documentation processes.

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

Investors comment

Amit Somani, Managing Partner at Prime Venture Partners, praised Elchemy’s innovative approach. "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, added, "We’ve had the privilege of witnessing Hardik and Shobhit’s journey from Day 1 and have been consistently impressed by their clarity of thought, exceptional execution, and high bar for governance, that has earned the trust of their customers, suppliers, and investors alike."