ESG Flo, an AI-powered data infrastructure platform, has secured $5.25 million in seed capital, it has announced.
ESG Flo launched earlier this year from Bain & Company’s Founder’s Studio, to help businesses create a robust, auditable ESG data infrastructure.
The technology uses AI automation and deep learning to gather data spread across the organisation to create reporting compliant with the EU CSRD and US SEC non-financial disclosure requirements.
ESG Flo targets customers in the industrial, manufacturing and infrastructure sectors that require a centralised way to manage their sustainability data given stakeholder pressure and level of ESG impact.
The funding round was co-led by Rho Ignition and Tola Capital. Also participating in the financing were Bain & Company and Contour Venture Partners.
The new capital will allow ESG Flo to expand its solution to offer a CSRD and SEC readiness solution, hire best-in-class engineers for product development to advance its AI engine, and scale its growth and marketing team to support more customers.
Further, as part of this round, Karolin Beck, Venture Partner at Tola Capital, Habib Kairouz, Managing Partner at Rho Ignition and Patrick Quinlan join the company’s board alongside Ron Kermisch of Bain & Company.
Commenting on the announcement, 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.”
Meanwhile, 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.”
“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,” added Karolin Beck, Venture Partner at Tola Capital.