Charles Esther
Novisto, a Canadian startup specializing in corporate ESG tracking, has secured $27 million in Series C funding.
The funding will support the expansion of its platform, which automates sustainability data management for major companies like Meta and Sanofi.
What Novisto Does
Novisto launched in 2019 with a software platform designed to help companies monitor and measure their environmental, social, and governance (ESG) impacts.
The platform acts like an accounting system but for broader sustainability data, serving as the system of record for corporate sustainability functions.
According to Charles Assaf, Novisto’s cofounder and CEO, the platform goes beyond reporting and disclosure to enable better management of sustainability efforts.
Automation and Benchmarking
One of Novisto’s key features is automating the collection and management of sustainability data, a process that can be very time-consuming when done manually.
The platform also compares a company’s ESG performance against industry benchmarks, showing how it stacks up against competitors.
Assaf emphasized the importance of having an auditable system for ESG data, rather than relying on spreadsheets like Excel.
Many companies have started externally assuring their ESG reports, and Novisto’s platform supports this verification process.
Business Model and Clients
Novisto operates on a subscription model, charging clients a monthly fee for access to its platform.
Its customer base includes large corporations such as Meta, JetBlue, and the pharmaceutical giant Sanofi.
Market Challenges and Opportunities
The ESG sector faces some fundraising challenges amid changing global attitudes and regulatory environments, particularly in the United States.
However, Europe’s more stringent ESG reporting requirements have created growth opportunities for startups like Novisto.
Funding and Future Plans
The $27 million Series C round was led by Inovia Capital and included participation from previous investors like White Star Capital, SCOR Ventures, and Sagard.
This latest round brings Novisto’s total funding to $55 million.
With the new capital, Novisto plans to expand its team, especially in Europe, to meet growing demand for ESG solutions.
Conclusion
Novisto’s innovative ESG tracking platform addresses a critical need for companies to manage sustainability data efficiently and transparently.
Its recent funding round reflects investor confidence in the growing importance of sustainability management and reporting.
As ESG regulations tighten worldwide, tools like Novisto’s will become increasingly essential for companies aiming to stay competitive and compliant.
