Many major corporations have set net-zero emissions targets, which is a positive step in the fight against climate change. These targets are starting to have a ripple effect throughout the supply chain, influencing companies of all sizes.
Larger companies with resources can monitor their carbon emissions with dedicated teams. However, smaller companies may struggle with this task due to limited manpower. This is where Greenly, a five-year-old company based in Paris, comes in. Their main product is carbon accounting software, which gathers customer data on utility usage, freight bills, cloud computing, and financial records. Using their own data and algorithms, Greenly calculates carbon emissions for customers by category and scope.
Greenly’s cofounder and CEO, Alexis Normand, states, “We have built a business around assisting small and mid-sized companies in meeting new carbon emission obligations at an affordable price.”
The company has experienced significant growth, reaching over $10 million in annual recurring revenue last year. Normand aims to double this number annually over the next few years.
To achieve their goals, Greenly plans to expand into life cycle assessments for individual products, offering a faster and more comprehensive approach than traditional manual assessments. This will allow smaller companies to meet industry requirements efficiently and accurately.
Greenly recently raised a $52 million Series B funding round to support their new initiatives. Leading the round was Fidelity International Strategic Ventures, with participation from other notable investors. This investment is a significant milestone for Greenly as it signifies a growing interest in climate tech companies among venture investors.
Unlike many climate tech startups, Greenly stands out for its SaaS approach to sustainability. This business model has resonated well with investors, who evaluate the company based on traditional SaaS metrics.
Greenly’s success with their Series B funding round indicates a positive shift in the climate tech industry, showcasing a growing market for sustainable businesses. This trend bodes well for the entire sector and highlights the importance of investing in sustainability.
