Greenly, a leading carbon accounting startup, has raised $52 million in a Series B funding round led by Fidelity International Strategic Ventures. The announcement comes after two years of growth. Propelled by its $23 million Series A funding round led by Energy Impact Partners (EIP) and XAnge.
The funding comes at a time when enterprises must pay greater attention to their carbon emissions. In Europe, the EU’s Corporate Sustainability Reporting Directive (CSRD) is coming into force for a growing number of companies. In the US, Greenhouse Gas emission reporting requirements are increasing, with 8,000 companies expected to report this year.
The funding will enable Greenfly to extend its global reach and cement itself as the go-to vendor. This will be for not only the enterprise, but also the mid-market and SME business community. This is a bold claim, but with legislation, especially in Europe, applying to ever smaller companies, it is a target-rich environment.
Organisations are often poorly equipped to capture the appropriate data. The Greenly platform already helps over 2,000 organisations to collate and manage data relating to their carbon management. Since 2022, Greenly has tripled its customer base.
Alexis Normand, CEO and Co-Founder of Greenly said, “Soon, monitoring GHG emissions will become as routine as overseeing financial health. Irrespective of size, industry, or geography, it is essential that all companies have the tools to effectively manage their emissions. This Series B will give us tremendous thrust to make it happen sooner.
“Greenly’s goal is to enable businesses to navigate more swiftly into a new era, where long-term value is synonymous with sustainable growth. We’re here to simplify carbon management, making it a fundamental aspect of every organization’s core practices. Our focus extends beyond regulatory compliance; we’re fostering a profound transformation towards sustainability within corporate cultures. Our technology is designed to be both precise and user-friendly, inviting everyone to be part of this critical movement.”
An Oversubscribed Funding Round
Other investors accompanied Fidelity International Strategic Ventures in the round. Also, participating were new investors BGV (Benhamou Global Ventures), Move Capital, Hewlett Packard Enterprise and HSBC. In addition, Series A investors XAnge and Energy Impact Partners reaffirmed their support for Greenly. Brian Halligan, Co-Founder and Chairperson of HubSpot, also participated in the round. He will also contribute his extensive experience to the Greenley team.
Enterprise Times also asked some questions of Laetitia Carle, COO and Director-General, France at Greenly. With so many investors, I asked whether the round was oversubscribed. She answered, “The funding was oversubscribed. Our dynamic industry is attracting many investors and there are not so many players that reach our scale. This is very encouraging for the industry as a whole as it demonstrates an increasing focus on sustainability.”
As part of the investment, Fidelity International Strategic Ventures will also take a seat on the board. Erik Mostenicky, Principal at Fidelity International Strategic Ventures, said, “We’re excited to support Greenly as they strive to make emissions management accessible to all. In a short space of time, the Greenly team has developed an impressive platform and range of services that extend beyond mere emissions compliance monitoring.
“Their offerings empower companies to manage their emissions, proactively engage with suppliers and become part of a greener energy transition. Bolstered by strong regulatory tailwinds, Greenly is well-positioned to lead the global shift towards comprehensive carbon and greenhouse gas emission management. Their efforts mark a significant step towards universal corporate sustainability, and we’re proud to be a part of this transformative journey.”
Extending global reach
I asked Carle how Greenly would extend its global reach supported by the new funding. She answered, “We plan on continuing our international expansion in the US and the UK and open new geographies, notably in Europe, as the CSRD boosts momentum. Our successful UK and US country openings allowed us to create a playbook for international expansion that we will leverage. We will also invest in Partnerships, as we strongly believe in the strength of ecosystems. Some of our partners are now investors and will also significantly contribute to our expansion.”
One of those partners is HPE. Fidelma Russo, Executive Vice President & General Manager, Hybrid Cloud & Chief Technology Officer at Hewlett Packard Enterprise, commented, “Achieving sustainability targets in hybrid IT environments can be complex and daunting endeavors for even the most sophisticated enterprises. HPE’s investment in Greenly aligns with the commitments we’ve made to our customers to help and support them on their sustainability journeys. We’re excited to partner with Greenly in providing the tools necessary for businesses to monitor, track, and minimize their carbon footprint within their IT infrastructure.”
Product and services
Greenly’s platform and services are a platform that many organisations are taking advantage of. The Climate Suite allows companies to budget decarbonization and reduce emissions in line with international frameworks like SBTi.
With education a key part of its mission, the Climate Academy helps organisations build in-house expertise. Giving them the opportunity to gain certifications and specialised knowledge around legal compliance, detailed accounting methodologies, and sector-specific eco-design. Other products and services include:
- Life Cycle Assessment (LCA) Builder disrupts product-level emission tracking by offering free LCA templates to a community of eco-designers
- Greenly Cloud helps IT departments reduce data center-related emissions
- Greenly Sustainable Procurement plugs into purchasing software to ensure suppliers actively contribute to low-carbon roadmaps
Customers include BNP Paribas, AXA, and L’Oreal. Irakli Lobzhanidze, General Manager at Konbini, commented, “Greenly’s platform is the most intuitive on the market and the fastest to learn. We can manage our action plans directly from the platform, which really makes the difference.”
Investing in product
Enterprise Times asked Carle how the company would improve its suite following the funding. She noted, “AI will play a pivotal role in facilitating data collection, reporting, and the development of action plans for carbon emission reduction. This approach will allow for further automation and increased accuracy in analyses (especially in defining physical flows) and recommendations provided to businesses.
“The goal is to simplify the inherent complexity of environmental reporting and decarbonization efforts as much as possible, making these processes more accessible and less time-consuming for companies. Greenly’s platform will also be enriched with a new integrated tool for Life Cycle Analysis (LCA), which will allow for an even finer mesh in capturing emissions snapshots, zooming in on the product.
“Greenly’s vision extends beyond service offerings. We rely on a dynamic community of some 2,000 clients who have entrusted us with the management of 50 million tCO2e. This community plays a crucial role in the continuous improvement of the accuracy and relevance of the data and recommendations we provide, thanks to collaborative data sharing and user-generated learning. This creates a virtuous circle of improvement and innovation that benefits all companies committed to reducing their carbon footprint.
“Greenly is now well on its way to revolutionizing how companies approach their climate responsibilities. By expanding its range of services and incorporating cutting-edge technologies like AI, Greenly facilitates the climate commitment of businesses worldwide, thus affirming its leadership position in the field of carbon accounting.”
Enterprise Times: What does this mean
Enterprises must wake up to the fact that they need to act swiftly on climate change and carbon emissions. Planting trees to offset emissions does not solve the issue. Firms must ensure that they meet the targets set by increasingly firm legislation. To achieve that, they must have the capability to measure and educate their employees. Greenly is one of the solutions that can do that.
Its recent growth has shown that some enterprises are paying attention. However, far more need to do so. While its ambition to extend into the SME market is laudable, one questions how it will do so effectively without further investment to extend its sales reach.
Most importantly, even if enterprises are not taking sustainability seriously, investors are. That this round was oversubscribed shows that they believe the potential for Greenly is huge. It will be an interesting company to follow. The question is, can it grow fast enough, or will it attract attention and be acquired?
