ESG Flo, an AI-Powered Data Infrastructure Platform, Raises $5.25 Million in Seed

By PR Newswire On Nov 6, 2023

Empowers Businesses to Integrate ESG Data Into Reporting & Decision Making, Funding Co-Led by Rho Ignition and Tola Capital

ESG Flo, an AI-powered data infrastructure platform, announced that it has secured $5.25 million in seed capital. The funding round was co-led by Rho Ignition and Tola Capital with participation from Bain & Company and Contour Venture Partners.

Sustainability teams currently spend most of their time manually collecting data and are buried by ineffective processes, often leading to errors and a waste of time and effort. ESG Flo launched earlier this year from Bain & Company’s Founder’s Studio to help businesses create a robust, auditable ESG (environmental, social, and governance) data infrastructure. The technology leverages AI automation and deep learning to gather data spread across the organization to create reporting that complies with the EU CSRD and US SEC non-financial disclosure requirements.

“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,” said Patrick Obeid, founder and CEO of ESG Flo.

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“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.

ESG Flo targets customers in the industrial, manufacturing and infrastructure sectors that need a centralized way to manage their sustainability data given stakeholder pressure and level of ESG impact.

“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,” said Karolin Beck, Venture Partner at Tola Capital.

With the new capital, ESG Flo will 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. As part of this round, Karolin, Habib and Patrick Quinlan, a proven entrepreneur with an expertise in ethics and compliance, join the company’s board alongside Ron Kermisch of Bain & Company.

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