AI-powered data infrastructure platform ESG Flo today announced it has secured $5.25 million in seed funding.
Launched in 2022 from Bain & Company’s Founder’s Studio, ESG Flo helps companies in the industrial, manufacturing and infrastructure sectors create a robust, auditable ESG data infrastructure. The technology uses AI automation and deep learning to collect data across the organization to create reporting that complies with the EU Corporate Sustainability Reporting Directive (CSRD) and the US Securities and Exchange Commission’s non-financial disclosure requirements.
ESG Flo said it will use the new capital to expand its solution to provide a CSRD and SEC readiness solution, hire engineers for product development to advance its AI engine, and its growth and marketing team scale up 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 conversations. Our mission is to provide companies with accurate ESG data for integrated reporting and responsible decision-making. Our new investors bring deep expertise in AI, allowing us to scale and support more companies to take real steps in their sustainability journey.”
The financing 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 front-end presentation of ESG data, but where companies struggle most is the ‘step zero’ of the process, where data is mapped, collected and transformed. This is exactly what ESG Flo achieves with a scalable product that uses backend technology, such as machine learning, to transform raw data into highly accurate metrics ready for third-party verification in seconds, saving your sustainability team time.”
Karolin Beck, Venture Partner at Tola Capital added:
“Amid the evolving ESG regulatory landscape, including upcoming EU CSRD reporting and non-financial disclosure requirements in the US, there is an urgent need for a robust data infrastructure that aligns with ESG regulatory mandates. Companies with strong ESG strategies gain 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.”