Greenly, a Paris-based tech start-up specializing in helping organizations reduce their carbon emissions, announced on Thursday that it has raised $23 million (about 21.27 million euros) as part of its round. Series A funding round. The round was co-led by Energy Impact Partners (EIP) and German and French investment funds Xange to scale up carbon accounting and management in the US and Europe.
Previously, Greenly raised $3 million in September 2021 and seed funding of $600,000 in 2020.
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Energy Impact Partners, LP (EIP) is a global investment platform leading the transition to a sustainable energy future. The company brings together entrepreneurs and forward-thinking energy and industrial companies to drive innovation. With over $2 billion in assets under management, EIP invests globally in venture capital, growth, credit and infrastructure.
Matthias Dill, Managing Partner at EIP, says: “EIP’s mission is to support the best entrepreneurs who are building the tools needed to decarbonize industries as quickly as possible. With our deep roots in the energy industry, we know that many business leaders are looking for practical tools to manage and reduce their carbon emissions. Greenly hit the nerve and managed to quickly expand her customer base. We are proud to support the team in its global expansion.
XAnge, which co-led this round, is a seed investment fund with 600 million euros under its management, and is based in Paris and Munich. Its investment team supports European entrepreneurs who wish to change everyday life through technology, by investing amounts ranging from €300K to €10M at the Seed stage. The company invests in the deeptech, healthcare, fintech, SaaS and e-commerce sectors.
In addition, the round also saw the participation of new investors, including Jean-Baptiste Rudelle, founder of Criteo, and the Galion Project.
Use of capital
Greenly says the funds will allow the company to continue its global rollout with a focus on the United States and Europe. In mid-March, Greenly opened new offices in New York to launch its US operations and now plans to triple its workforce.
The company announces that it will expand its technical teams and recruit carbon footprint experts and sales representatives. Therefore, the startup will open 100 positions in Paris and the United States.
Helping businesses reduce their carbon footprint
The US Green Deal and the new “European taxonomy of sustainable activities” put pressure on companies to manage their carbon emissions. To massiveize carbon management, Greenly says it is disrupting the council-led manual data collection and analysis process, by deploying simple, intuitive software.
Alexis Normand, CEO and co-founder, says: “Greenly’s vision is that all companies must play a role in the fight against global warming. You can’t improve something you don’t measure. But you also need simple tools that any SME can use to make this measurement and reduction within reach. We had to invent software that merges financial and carbon accounting. We are proud to contribute to this revolution.
Greenly’s mission is simple: to accelerate the development of technology to enable each player – whether business, bank or individual – to better monitor and control their CO2 emissions.
The company’s platform automates carbon accounting in full compliance with international reporting standards (CDP, GHG and TCFD). With already more than 400 corporate clients, the platform wants to target SMEs rather than large companies as a way to disrupt the industry. Currently, the platform is already used by more than a hundred scale-ups and unicorns in France, including Payfit, Swile, Konbini, Foodles, LeoCare, Foodchéri, Outsight, Alma etc.
Greenly was founded in 2019 by Alexis Normand, former B2B manager at Withings and Nokia Digital Health, HEC, Sciences-Po, Techstars Alumni; Matthieu Vegreville, CTO, X-Telecom, former data scientist at Withings & Embleema; and, Arnaud Delubac, UX/UI, ESSEC-Centrale, INSEEC, former member of the French Prime Minister’s digital communication team.
One of Greenly’s main added values is to automate carbon analysis, using data accessible via APIs, namely accounting data or billing information from major contributors to GHG emissions. The company has developed an AI-powered analysis and recommendation engine to suggest practical ways to reduce its emissions, for example by suggesting less carbon-intensive alternatives to suppliers.
Democratizing the carbon footprint of SMEs through AI
According to Alexis Normand, “Today, only around 20% of global carbon emissions are tracked and managed. To effectively tackle climate change, we need to disrupt a market still dominated by low-tech consultancies catering to companies with one-off assignments worth between $20,000 and $100,000. Competitors like Watershed or Persefoni are trying to digitize this process and it’s probably a good idea. But that still leaves out the small businesses that actually account for the largest share of emissions. »
“At Greenly, we believe this market needs to be radically disrupted by providing easy-to-use, affordable software for any type of business, making carbon accounting and management as ubiquitous as financial management. This is the only way to put companies on the path to Net Zero and limit global warming,” adds Normand.
Greenly’s integration with more than 100 business applications automatically quantifies a majority of emissions-generating activities, minimizing manual data entry and speeding up measurements.
Typically, accounting data, energy or data center consumption (Amazon Web Services, Google Cloud, etc.), as well as e-commerce activity (Shopify, etc.), can be imported directly into the platform. These integrations provide real-time tracking of emissions-generating activities. With an extensive library of more than one hundred thousand emission factors, Greenly converts these activities into emissions metrics and generates a carbon disclosure report that complies with international standards (Greenhouse Gas Protocol).
In addition, the company also offers e-learning and commitment modules to mobilize the company’s employees and enable them to appropriate the subject independently.
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