The specialty chemicals startup Covvalent, run by AT7 Technology Inc., has received seed funding of $4.3 million from early-stage venture capital firm Nexus Venture Partners.
Vishal Chaudhary (Zetwerk), Ramakant Sharma (Livspace), Rajesh Yabaji (BlackBuck), and Kaushal Soparkar (Meghmani Group), among others, participated in the round as angel investors and founders.
The Gurugram-based business announced it would use the money to expand its product and business teams and boost supply chain effectiveness. These tools provide the greatest possible cross-border shopping experience, including prompt product delivery and transparency.
Anand Datta, Nexus Venture Partners, said, “The global supply chain for specialty chemicals is ripe for disruption – new production centers and more efficient supply chains will emerge, enabled by technology.”
Entrepreneurs establishing product-first firms have been working with Nexus Venture Partners as partners. Over 75 businesses focusing on consumer retail, business services, healthcare, education, and corporate technology have received investment from it.
Earlier this month, Nexus led an $8 million investment round in the US-based fintech company Doola. The VC firm had provided $10 million in capital to the finance startup Jify in August.
Covvalent aims to reinforce the cross-border supply chain
Covvalent, founded this year by Sandeep Singh and Arush Dhawan, claims to solve core cross-border supply chain issues such as supplier discovery, delivery delays, and quality rejections. The core team claims to have extensive experience in the specialty chemicals industry and a thorough 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.”
The startup estimates that the market for specialty chemicals worldwide is worth an astounding $800 billion and expanding at a rate of about 6 percent each year. Supply chain resilience and alternative sources of procurement have become necessary due to new products, trade conflicts, and COVID issues.
“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 the supply chain and automating quality controls,” said Arush.