ESG Flo, an innovative AI-powered data infrastructure platform, has announced the successful closure of a seed capital funding round, securing $5.25m.
The investment round was co-led by Rho Ignition and Tola Capital, with participation from prominent firms such as Bain & Company’s and Contour Venture Partners.
With the newly secured capital, ESG Flo plans to expand its offerings, including a CSRD and SEC readiness solution, as well as hire top-tier engineers to enhance its AI engine and grow its marketing and support teams. Additionally, the company has appointed industry experts to its board, further strengthening its position in the ESG data infrastructure space.
ESG Flo, launched earlier this year from Bain & Company’s Founder’s Studio, has set out to provide businesses with a robust, auditable ESG data infrastructure. The company’s cutting-edge technology harnesses the power of AI automation and deep learning to streamline the process of gathering data from various sources within an organisation. This data is then transformed into compliant reports, meeting the requirements of both the EU CSRD and US SEC non-financial disclosure regulations.
Patrick Obeid, founder and CEO of ESG Flo, said, “We envision a business world where ESG conversations are as important as financial ones. We’re on a mission to equip businesses with precise ESG data for integrated reporting and responsible decision making. Our new investors bring deep expertise in AI which will allow us to scale and support more businesses to take real steps in their sustainability journey”.
Habib Kairouz, managing partner at Rho Ignition, said, “Many solutions focus on the frontend presentation of ESG data, but what companies are struggling with most is ‘step zero’ of the process, which involves mapping, collecting and transforming data. This is exactly what ESG Flo accomplishes with a scalable product that uses backend technology, such as machine learning, to transform raw data into high-accuracy metrics ready for third-party verification in a matter of seconds, saving time for your sustainability team.”
Karolin Beck, Venture Partner at Tola Capital, said, “Amidst the evolving landscape of ESG regulations, including the forthcoming EU CSRD reporting and non-financial disclosure requirements in the US, there is an urgent demand for a robust data infrastructure that aligns with ESG regulatory mandates. Companies with strong ESG strategies gain a competitive advantage, and ESG Flo facilitates seamless integration of environmental, social, and governance factors into decision-making. This promotes sustainable and responsible practices that benefit stakeholders, the planet and future generations.”
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