AI-powered data infrastructure platform ESG Flo announced today that it has secured $5.25 million in seed capital.
Launched in 2022 from within Bain & Company’s Founder’s Studio , ESG Flo helps industrial, manufacturing and infrastructure sector businesses to create robust, auditable ESG data infrastructure. The technology leverages AI automation and deep learning to gather data across the organization to create reporting that complies with the EU Corporate Sustainability Reporting Directive (CSRD) and US Securities and Exchange Commission non-financial disclosure requirements.
ESG Flo said that it will use the new capital to expand its solution to offer a CSRD and SEC readiness solution, hire engineers for product development to advance its AI engine, and scale its growth and marketing team to support more customers.
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.”
The funding round was co-led by Rho Ignition and Tola Capital with participation from Bain & Company and Contour Venture Partners.
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 added:
“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.”