Covalo, a Zurich-based AI-powered data platform for the consumer goods industry, has raised €3.5M ($4M) in a seed extension round led by Hi inov. The platform centralizes product and company data from 1,500+ suppliers, enabling brands and suppliers to collaborate on sustainable personal care products. The capital will accelerate its evolution into the industry's data backbone, with AI agents for compliance and workflows.
Seed Extensions Fuel Ingredients Digitization
This funding arrives as digital platforms digitize chemical supply chains: Knowde raised $60M Series C in 2024 for its chemicals marketplace. Covalo's focus on personal care addresses regulatory pressures like the EU Green Deal, where 80% of products may need reformulation by 2030 per EU-Startups. Its network already spans 6,000+ brands in 145+ countries.
Fragmented Data Delays Launches
Bringing a personal care product to market takes 3-5 years on average due to scattered supplier data across emails, PDFs, and portals. Regulations like the upcoming EU microplastics reporting deadline in May 2026 exacerbate this, demanding structured compliance data. Suppliers and brands struggle with 50+ tabs of information overload during sourcing.
AI Backbone Enables 90% Faster Discovery
Covalo unifies 100k+ ingredients into a standard data model co-developed with ETH Zürich and EPFL, offering AI recommendations and integrations like TraceOne. Unlike static databases such as UL Prospector, it provides dynamic search for ingredients, formulations, and services with 90% faster discovery. Trusted by L'Oréal, Sephora, and Beiersdorf, it posted 84% engagement growth in 2025 and NRR over 145%.
As Timo von Bargen, co-founder and Co-CEO, noted:
"Five years ago, we built the world’s largest ingredient discovery platform… That compounding effect is something no standalone tool can replicate."
Swiss VCs Signal Sustainability Bet
Hi inov led the round, with High-Tech Gründerfonds (HTGF) and seed+speed Ventures participating, extending prior backing. These investors bring conviction in Covalo's pivot from marketplace to infrastructure amid sustainability mandates. The funding validates its traction with major players like Givaudan and Symrise.
Personal Care Ingredients Expand
The global personal care ingredients market stands at $22.5B in 2026, projected to reach $32.3B by 2033 at 5.3% CAGR per Persistence Market Research. Sustainability trends drive this, favoring platforms like Covalo over broader chemical marketplaces. EU regulations, including microplastics bans from 2027, push reformulations, amplifying demand for data unification.
Clariant Veterans Lead Data Pivot
Co-founders Yann Chilvers and Timo von Bargen spun Chemberry out of Clariant, where they led digital strategy and open innovation in chemicals. Chilvers handled strategy across 130 countries; von Bargen scaled new technologies. Their domain expertise positions Covalo to capitalize on AI and regulatory shifts in personal care.
AI Agents Tackle EU Compliance
Covalo plans AI agents for RFI/RFP automation and compliance checks ahead of in-cosmetics Global 2026. It eyes PIM/MDM expansions and deeper integrations, leveraging its 22k+ users for shared infrastructure. As official partner for the April event, it bridges digital discovery with physical sourcing.