Zurich’s Covalo Raises €3.5 Million to Transform the Personal Care Industry’s Data Backbone

In a significant move poised to reshape the personal care industry, Zurich-based startup Covalo has secured a €3.5 million Seed extension. This funding round, led by Hi inov with participation from existing investors HTGF and seed+speed Ventures, marks Covalo's evolution from an ingredients marketplace to a comprehensive data infrastructure for the industry. Celebrating its 5-year anniversary, Covalo aims to address the fragmented nature of ingredient data management, positioning itself as a pivotal player in the industry’s digital transformation.

Transforming Data Management in Personal Care

Covalo was founded in 2021 to bridge the gap between consumer goods companies and their suppliers, enhancing the speed and sustainability of product development. With a network that includes over 1,500 ingredient suppliers and more than 6,000 brands across 145 countries, Covalo has established itself as a critical platform for R&D teams. These teams rely on Covalo to discover, assess, and collaborate on ingredients effectively.

The personal care industry often grapples with scattered ingredient data, which remains dispersed across different systems and formats. A typical product, such as a facial cream, can involve 35-40 raw materials, each accompanied by numerous documents related to safety, compliance, sustainability, and technical specifications. Covalo addresses this complexity by offering a secure, neutral platform that seamlessly integrates with suppliers’ product information management (PIM) systems and brands’ R&D workflows. This integration replaces outdated methods like emails and spreadsheets, ensuring real-time updates and streamlined data management.

A Strategic Shift Towards Industry Infrastructure

Timo von Bargen, co-founder and Co-CEO of Covalo, highlights that the company’s journey began with building the world's largest ingredient discovery platform. However, the real challenge lies in creating a shared system where ingredient data is structured once and reused universally. Covalo’s largest customers have expanded their platform use significantly, not through aggressive sales tactics, but because the structured data proves invaluable across R&D, regulatory, and procurement teams.

With new regulations such as the EU Green Deal and microplastics ban, Covalo anticipates that 80% of products will require reformulation by 2030, further increasing data complexity. The company’s platform aims to provide a common, structured foundation, enabling the industry to adopt AI and advanced digital workflows efficiently.

Why This Matters for Startups and Investors

For startups and investors, Covalo’s approach underscores the importance of data management in driving industry-wide innovation. By positioning itself as the data backbone of the personal care industry, Covalo demonstrates the potential for startups to create value by solving fundamental industry challenges. As regulations tighten and consumer demands shift, the ability to manage and leverage data effectively will be crucial for companies aiming to remain competitive.

Covalo’s success also highlights the growing trend of digital transformation across industries. Startups that can provide seamless, integrated solutions stand to gain a significant competitive edge. For investors, Covalo’s trajectory offers insights into the types of innovative solutions that can attract substantial interest and funding.

A Vision for the Future

Looking ahead, Covalo plans to use its new capital to expand enterprise offerings, introduce AI-driven analytics and automation, and enhance its data platform with full PIM and master data management capabilities. By partnering with industry leaders like TraceOne and Reed Exhibitions, Covalo is well-positioned to strengthen its role as a critical infrastructure provider.

As Covalo continues to evolve, it exemplifies the transformative power of startups in redefining industry landscapes. With its innovative approach to data management, Covalo is not just keeping pace with change—it’s driving it.

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