ESG Flo, a data infrastructure platform powered by AI, has announced that it successfully secured $5.25 million in initial funding. This funding round was jointly led by Rho Ignition and Tola Capital, and it also included participation from Bain & Company and Contour Venture Partners.
At present, sustainability teams are predominantly engaged in manually gathering data, struggling with inefficient processes, resulting in errors and a significant waste of time and effort. ESG Flo was launched earlier this year through Bain & Company’s Founder’s Studio with the aim of helping businesses establish a robust and auditable environmental, social, and governance (ESG) data infrastructure. The technology utilizes AI automation and deep learning to collect data from various parts of the organization and generate reports that comply with the non-financial disclosure requirements of the EU CSRD and US SEC.
ESG Flo is focused on serving customers in the industrial, manufacturing, and infrastructure sectors who require a centralized solution for managing their sustainability data, driven by stakeholder pressure and the significance of their ESG impact.
With this new capital injection, ESG Flo plans to expand its offering to provide a solution tailored for compliance with the EU CSRD and US SEC, recruit top-tier engineers for product development to enhance its AI capabilities, and expand its growth and marketing team to accommodate more customers. As part of this funding round, Karolin, Habib, and Patrick Quinlan, a seasoned entrepreneur with expertise in ethics and compliance, will join the company’s board, alongside Ron Kermisch from Bain & Company.
“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,” said Habib Kairouz, Managing Partner at Rho Ignition.