Oct 3 (Reuters) - Mstack Chemicals has raised $40 million in a Series A funding round led by Lightspeed Venture Partners and Alpha Wave with additional backing from HSBC Innovation Banking, the chemical sourcing firm said on Thursday.

The new round values Mstack between $90 million to $100 million, a person familiar with the matter said, as the company seeks to expand its global operations.

WHY IT'S IMPORTANT

The global chemical supply chain has been experiencing disruptions since 2020 owing to the COVID-19 pandemic and geopolitical conflicts. Firms like Mstack promise to address these challenges, ensuring a stable supply of essential chemicals for high energy-consuming industries.

Mstack plans to use the funds to expand its footprint across the Middle East, Latin America and Asia, while growing its presence in the United States and doubling down on research and development.

CONTEXT

Mstack offers mid-to-large enterprises a platform for sourcing specialty chemicals through a supply chain that is "secure against geopolitical disruptions", it said.

The company offers products in four categories - oil and gas, coatings, water treatment and home and personal care. With this funding, Mstack said it plans to expand into agrochemicals and pharmaceuticals.

KEY QUOTES

"Our R&D team in India is poised to commercialize multiple chemicals soon. Future plans include establishing advanced labs to drive innovation and IP creation, while offering custom formulations and process innovation through our on-demand platform." said Shreyans Chopra, founder at Mstack.

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https://www.reuters.com/markets/commodities/mstack-chemicals-raises-funds-around-100-mln-valuation-source-says-2024-10-03/