Covalo Raises €3.5M for Personal Care Data Infrastructure

Zurich-based Covalo has successfully closed a €3.5 million funding extension, signaling a significant step towards establishing itself as the central data hub for the global personal care sector. This latest capital infusion was spearheaded by prominent French B2B investor Hi Inov, with continued backing from existing stakeholders High-Tech Grunderfonds (HTGF) and seed+speed Ventures. The company, previously known as Chemberry, is strategically pivoting from its origins as an ingredient marketplace to become a foundational data infrastructure provider.

Founded in 2021 by Timo von Bargen and Yann Chilvers, Covalo's platform is designed to streamline the complex supply chain for consumer goods manufacturers. It facilitates connections between over 1,500 ingredient, service, and packaging suppliers and more than 6,000 brands worldwide. Key industry players such as Givaudan, Symrise, PUIG, and La Prairie already leverage Covalo's capabilities, underscoring the platform's growing importance in the beauty and personal care industry, a market valued in the hundreds of billions globally and experiencing steady growth driven by innovation and evolving consumer preferences.

Covalo's ambitious evolution involves integrating directly with suppliers' Product Information Management (PIM) systems and connecting with brands' Research & Development (R&D) and Product Lifecycle Management (PLM) workflows. This move aims to replace fragmented, manual processes involving emails, PDFs, and spreadsheets with a unified, digital data backbone. This transition addresses a critical industry pain point: the need for efficient, accurate, and accessible product data across the entire value chain, from raw material sourcing to final product launch.

The platform's increasing utility is evidenced by substantial user engagement growth. In the past year, platform interactions surged by 84%, reaching 1.3 million monthly interactions. Furthermore, Covalo achieved an impressive net revenue retention rate exceeding 145%, indicating strong customer satisfaction and expansion within existing accounts. These metrics highlight the market's demand for Covalo's integrated data solutions and its successful execution of its growth strategy.

The newly acquired funds will be instrumental in accelerating Covalo's product development roadmap. A significant portion will be allocated to enhancing the platform's enterprise offering, with a particular focus on developing advanced AI-powered tools. These tools are intended to automate workflows, refine data processing capabilities, and bolster regulatory compliance, a crucial aspect in the highly regulated personal care industry. Infrastructure scaling is also a priority to support the anticipated increase in user adoption and data volume.

This strategic funding round positions Covalo to capture a larger share of the digital transformation occurring within the personal care sector. By providing essential data infrastructure, the company is enabling greater transparency, efficiency, and innovation for its clients. The focus on AI and robust data management is particularly relevant as the industry grapples with increasing complexity in product formulations, sustainability demands, and faster market cycles. Covalo's expansion could set a new standard for data interoperability and intelligence within this dynamic consumer market.