The global Environmental, Social, and Governance (ESG) reporting market is growing rapidly and is expected to grow at a CAGR of 17% to reach $16 billion by 2027. At the same time, the number of sustainable finance regulations and policy interventions is also accelerating, putting pressure on investors to meet market and regulatory demands.
Founded in 2019 by Juan Manuel Serruya and Manne Larsson and headquartered in Stockholm, Datia aims to support investors in their sustainability work. The fintech company has now raised $3.4 million in a seed funding round to simplify investors’ transition to sustainable finance.
The funding will drive its expansion across Europe. It will also help to accelerate research and development of its ESG tools and sustainability data.
The investment was led by Berlin-based VC firm Nauta Capital, with participation from Accel Starter Ramzi Rizk, Zenloop’s founder Paul Schwarzenholz, Söderberg & Partners and Sting.
The startup offers sustainability calculations for hundreds of data points like carbon footprint, gender pay gap and energy usage on companies and funds. The company works with asset managers, wealth advisors, and platforms, allowing for measuring the impact of portfolios, regulatory reporting, and screening.
According to the company, it has a customer network with over $100B assets under management (AUM) currently.
Juan Manuel Serruya, founder and CEO of Datia, said: “Old-school ESG ratings aren’t enough anymore. Increasingly the challenge is integrating real, hard data into the investment process, complying with rapidly changing regulations and client demands for sustainability. Investors face challenges collecting hundreds of ESG data points, incorporating them into their investment process and complying with complex regulatory client demands. Datia is an investor-first solution for that.”
Guillem Sague, Nauta Capital partner and recently appointed Datia board member, added: “ESG can have a positive effect on the financial performance and reduce overall risk. Datia’s ability to help the investor with ESG data, means less of a headache and more transparent analysis. Ultimately, it brings the investor forward into the future of sustainable finance.”
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