ChemDirect, an online marketplace for specialty chemicals, recently closed a Series A funding round led by Schneider.
The financing will enable ChemDirect to grow its marketplace of chemicals shipped directly from vetted suppliers, build out new logistics and payment technologies, and scale its go-to-market efforts, the company said.
According to a report in The Wall Street Journal, the funding lead includes Schneider obtaining a minority stake in ChemDirect’s business, making it a “key logistics connection” for the digital operation. The Green Bay, Wisconsin-based carrier is expected to expand its capabilities for bulk deliveries to industrial customers through the agreement.
“We are encouraged by the efficiency ChemDirect brings chemical shippers and the industry,” said Shaleen Devgun, Schneider executive vice president, and chief innovation and technology officer. “With over 500,000 products readily available online and real-time credit terms, ChemDirect is the competitive differentiator today’s chemical buyers need to navigate supply chain challenges successfully.”
The Series A round follows the recent launch of ChemDirect’s new payment platform, ChemPay, which offers negotiation-free payment terms, real-time logistics, and flexible payment methods to simplify the buying process, so suppliers can receive payments in days instead of many weeks, the company added.
By bringing the chemical buying process online, ChemDirect helps buyers save money and avoid long, complex sales cycles and delivery times typically experienced with conventional sourcing, ChemDirect maintained. Purchases on ChemDirect have an average fulfillment time of three and a half days and up to 80% in cost savings over other purchasing channels.
“The chemical industry is a $6 trillion market that largely operates in a pre-digital fashion,” said Tyler Ellison, ChemDirect’s founder and CEO, who is a former senior-level executive at Schneider. “Today’s supply chain chaos has created a unique opportunity for ChemDirect to disrupt traditional processes, increasing efficiencies like never before and creating a better overall experience for chemical buyers and sellers.”