Datamaran, the London-based ESG risk management platform, has recently secured a significant $33 million in Series C funding. This investment comes amidst a growing need for businesses to adapt to increasing ESG demands. As the tech landscape evolves, Datamaran aims to enhance its market presence in the U.S. and Europe, leveraging this financial boost to refine its generative AI capabilities. The company’s efforts point to a strategic alignment with the ongoing digital transformation and regulatory changes affecting global enterprises.
How Does Morgan Stanley Support Datamaran?
Morgan Stanley Expansion Capital, known for its investments in high-growth sectors such as technology and healthcare, is the primary investor in this round. This investment firm has a long-standing history of leveraging its global brand to support promising companies. Their decision to back Datamaran underlines the potential seen in the company’s ESG-focused software solutions.
Lincoln Isetta, Managing Director of Morgan Stanley Expansion Capital, remarked, “Datamaran has exhibited impressive growth and capital efficiency since we first met them over two years ago.”
This collaboration aims to further Datamaran’s reach into new markets and expand its clientele of Fortune 500 companies.
What Makes Datamaran a Key Player in ESG Management?
Datamaran, established in 2014, has carved out a niche in providing data-driven insights into ESG risks. Its platform allows businesses to analyze material risks and integrate these findings into their corporate strategies. With the backing of influential clients like Dell and Pepsico, Datamaran offers tools that help organizations navigate the complex regulatory landscape.
Co-founder Marjella Lecourt-Alma stated, “This investment will enable us to stay at the forefront of innovation in AI-powered software to serve our clients’ growing needs.”
The company’s technology supports decision-makers in addressing over 4,000 global ESG regulations.
In September 2022, Datamaran raised £11.7 million in its Series B round, involving partners such as Fortive and American Electric Power. This previous round set the stage for the current expansion strategy. The consistent support from longstanding partners highlights a steady growth trajectory. Datamaran’s history of securing significant investments demonstrates the trust and confidence investors have in its vision and potential to impact ESG compliance positively.
The proactive approach taken by Datamaran in addressing the ever-evolving landscape of ESG reporting is evident. The company has managed to double its subscription revenue over the past 18 months, reflecting the increasing demand for its comprehensive governance solutions. This trend shows a clear incentive for companies to integrate ESG practices, driven by both regulatory requirements and stakeholder expectations for accountability.
This latest funding round reflects a broader industry trend where ESG factors are becoming critical components of corporate governance. As regulations like the EU’s Corporate Sustainability Reporting Directive gain prominence, companies are compelled to adopt more robust ESG strategies. Datamaran’s technology empowers businesses to not only comply with these regulations but also use ESG insights as a strategic advantage. The company’s ongoing growth and innovation efforts will likely play a crucial role in shaping the future of ESG management.
