Carbonfact Raises $15 Million for Emissions Reporting Solution for Fashion Industry
Carbon management software startup Carbonfact announced that it has raised $15 million with proceeds from the financing aimed at supporting its solutions to help the fashion industry automate environmental data collection and reporting.
Founded in 2021, Paris, France-based Carbonfact provides solutions for apparel, luxury, and footwear brands measure, report and reduce emissions, and to meet regulations such as the EU’s Corporate Sustainability Reporting Directive (CSRD).
According to Carbonfact, the financing comes as apparel and footwear companies are facing an increasingly difficult regulatory landscape, with new sustainability reporting rules requiring large amounts of data to be manually verified and consolidated across supply chains. The company said that its solutions address these challenges, automating the data collection and reporting process, enabling accurate and primary data collection from multiple tiers of the supply chain.
Carbonfact’s software connects to company IT systems and cleans and analyzes data to identify gaps and anomalies, employing machine learning to systematically fill in any missing details and provide reliable footprint calculations, even when data is incomplete. Carbonfact recently launched a new suite of modeling tools that enable fashion brands to understand how changes in product design or supplier selection can affect carbon footprints before products are made.
Marc Laurent, Carbonfact CEO and Co-founder said:
“After meeting with hundreds of textile brands and suppliers we realized that collecting data and reporting on all product and supply-chain information is a complex task that requires more comprehensive data management than spreadsheets allow. We believe that fashion brands should be able to measure and report on climate progress with limited manual work.”
The new Series A round was led by existing investor VC firm Alven, which also led Carbonfact’s seed round in 2022, with participation from VC firm Headline—which will join the board – and startup accelerator Y Combinator, which included Carbonfact in its 2021 batch.
According to Carbonfact, since its seed round 18 months ago, the company has onboarded 150+ apparel and footwear brands including Columbia, New Balance, and Carhartt.
Bartosz Jakubowski, Partner at lead investor Alven, said:
“We strongly believe the future is about vertical and product-centric Carbon Management Platforms, and we were impressed by the leadership position that Carbonfact has been able to take on the fashion industry”.