Climate

Greenly lands $52M to help smaller companies track CO2 emissions

Comment

Concept illustration depicting clean energy
Image Credits: Man As Thep / Getty Images

Plenty of major corporations have announced net-zero emissions targets. And while that alone won’t be enough to move the needle on climate change, these targets have gotten the ball rolling. Those net-zero goals are trickling down, too, influencing companies throughout the supply chain.

Well-capitalized companies can track these carbon emissions throughout their operations by employing a dedicated team. Smaller companies, though, may not have the headcount for that. Enter Greenly, a five-year-old, Paris-based outfit whose main product is carbon accounting software, which pulls in customer data, including utility data, freight bills, cloud computing usage, and financial records. It takes that information and, coupled with its own data and algorithms, calculates carbon emissions by category and scope for customers.

“We have built a business on helping these SMBs and mid-market companies cope with those new obligations at a lower price,” said co-founder and CEO Alexis Normand.

The startup’s business has been growing at a reasonable clip. Greenly last year recorded over $10 million in annual recurring revenue. Normand hopes to double ARR annually for the next several years.

To help hit those targets, Greenly is looking to expand beyond company-level carbon accounting and into life cycle assessments for individual products. When undertaken manually, these assessments can take weeks to months to complete, requiring companies to tally their materials and energy usage along with that of their suppliers to arrive at a carbon footprint figure for a single item. Greenly is hoping its automation-heavy approach will help smaller companies tackle those assessments more quickly and comprehensively by drawing on its carbon accounting expertise.

“In some industries, it is more and more of a requirement. Like in the manufacturing space, you can’t sell to General Motors or Ford without giving the carbon footprint of every single spare part. In the garment industry and the construction industry, it’s becoming the same thing,” Normand said.

To fund those new initiatives, Greenly recently raised a $52 million Series B, TechCrunch has exclusively learned. The round was led by Fidelity International Strategic Ventures with participation by Benhamou Global Ventures, Energy Impact Partners, Hewlett Packard Enterprise, HSBC, Move Capital and XAnge. The company’s fundraising was well underway before the recent SEC rules were approved, and while the then-proposed regulations were not the main driving force behind the round, they were a “booster.”

The fact that the fundraise is a sizable Series B helps it stand out among climate tech companies, which tend to encounter hurdles after the early stages before growth equity can step in, the so-called missing middle.

That’s in part because Greenly is not a stereotypical hard-tech climate startup. It came into the round with an advantage: It’s applying SaaS to climate tech, and SaaS is a business model that’s well understood.

“Nobody asked us different metrics than they would have expected from another SaaS company,” Normand said. “Investors were not nicer to us because we were climate tech. They looked at things that everybody else looks at, like annual recurring revenue, retention and stickiness of the solution engagement, and so on.”

Greenly’s Series B isn’t necessarily a sign that it’s getting easier for climate tech startups to bridge the middle rounds. But it does suggest that venture investors are warming to climate tech more broadly, proving that there’s a market for businesses focused on sustainability. It’s a shift that may end up benefiting the entire sector.

More TechCrunch

Zen Educate, an online marketplace that connects schools with teachers, has raised $37 million in a Series B round of funding. The raise comes amid a growing teacher shortage crisis…

Zen Educate raises $37M and acquires Aquinas Education as it tries to address the teacher shortage

“When I heard the released demo, I was shocked, angered and in disbelief that Mr. Altman would pursue a voice that sounded so eerily similar to mine.”

Scarlett Johansson says that OpenAI approached her to use her voice

A new self-driving truck — manufactured by Volvo and loaded with autonomous vehicle tech developed by Aurora Innovation — could be on public highways as early as this summer.  The…

Aurora and Volvo unveil self-driving truck designed for a driverless future

The European venture capital firm raised its fourth fund as fund as climate tech “comes of age.”

ETF Partners raises €284M for climate startups that will be effective quickly — not 20 years down the road

Copilot, Microsoft’s brand of generative AI, will soon be far more deeply integrated into the Windows 11 experience.

Microsoft wants to make Windows an AI operating system, launches Copilot+ PCs

Hello and welcome back to TechCrunch Space. For those who haven’t heard, the first crewed launch of Boeing’s Starliner capsule has been pushed back yet again to no earlier than…

TechCrunch Space: Star(side)liner

When I attended Automate in Chicago a few weeks back, multiple people thanked me for TechCrunch’s semi-regular robotics job report. It’s always edifying to get that feedback in person. While…

These 81 robotics companies are hiring

The top vehicle safety regulator in the U.S. has launched a formal probe into an April crash involving the all-electric VinFast VF8 SUV that claimed the lives of a family…

VinFast crash that killed family of four now under federal investigation

When putting a video portal in a public park in the middle of New York City, some inappropriate behavior will likely occur. The Portal, the vision of Lithuanian artist and…

NYC-Dublin real-time video portal reopens with some fixes to prevent inappropriate behavior

Longtime New York-based seed investor, Contour Venture Partners, is making progress on its latest flagship fund after lowering its target. The firm closed on $42 million, raised from 64 backers,…

Contour Venture Partners, an early investor in Datadog and Movable Ink, lowers the target for its fifth fund

Meta’s Oversight Board has now extended its scope to include the company’s newest platform, Instagram Threads, and has begun hearing cases from Threads.

Meta’s Oversight Board takes its first Threads case

The company says it’s refocusing and prioritizing fewer initiatives that will have the biggest impact on customers and add value to the business.

SeekOut, a recruiting startup last valued at $1.2 billion, lays off 30% of its workforce

The U.K.’s self-proclaimed “world-leading” regulations for self-driving cars are now official, after the Automated Vehicles (AV) Act received royal assent — the final rubber stamp any legislation must go through…

UK’s autonomous vehicle legislation becomes law, paving the way for first driverless cars by 2026

ChatGPT, OpenAI’s text-generating AI chatbot, has taken the world by storm. What started as a tool to hyper-charge productivity through writing essays and code with short text prompts has evolved…

ChatGPT: Everything you need to know about the AI-powered chatbot

SoLo Funds CEO Travis Holoway: “Regulators seem driven by press releases when they should be motivated by true consumer protection and empowering equitable solutions.”

Fintech lender SoLo Funds is being sued again by the government over its lending practices

Hard tech startups generate a lot of buzz, but there’s a growing cohort of companies building digital tools squarely focused on making hard tech development faster, more efficient and —…

Rollup wants to be the hardware engineer’s workhorse

TechCrunch Disrupt 2024 is not just about groundbreaking innovations, insightful panels, and visionary speakers — it’s also about listening to YOU, the audience, and what you feel is top of…

Disrupt Audience Choice vote closes Friday

Google says the new SDK would help Google expand on its core mission of connecting the right audience to the right content at the right time.

Google is launching a new Android feature to drive users back into their installed apps

Jolla has taken the official wraps off the first version of its personal server-based AI assistant in the making. The reborn startup is building a privacy-focused AI device — aka…

Jolla debuts privacy-focused AI hardware

The ChatGPT mobile app’s net revenue first jumped 22% on the day of the GPT-4o launch and continued to grow in the following days.

ChatGPT’s mobile app revenue saw its biggest spike yet following GPT-4o launch

Dating app maker Bumble has acquired Geneva, an online platform built around forming real-world groups and clubs. The company said that the deal is designed to help it expand its…

Bumble buys community building app Geneva to expand further into friendships

CyberArk — one of the army of larger security companies founded out of Israel — is acquiring Venafi, a specialist in machine identity, for $1.54 billion. 

CyberArk snaps up Venafi for $1.54B to ramp up in machine-to-machine security

Founder-market fit is one of the most crucial factors in a startup’s success, and operators (someone involved in the day-to-day operations of a startup) turned founders have an almost unfair advantage…

OpenseedVC, which backs operators in Africa and Europe starting their companies, reaches first close of $10M fund

A Singapore High Court has effectively approved Pine Labs’ request to shift its operations to India.

Pine Labs gets Singapore court approval to shift base to India

The AI Safety Institute, a U.K. body that aims to assess and address risks in AI platforms, has said it will open a second location in San Francisco. 

UK opens office in San Francisco to tackle AI risk

Companies are always looking for an edge, and searching for ways to encourage their employees to innovate. One way to do that is by running an internal hackathon around a…

Why companies are turning to internal hackathons

Featured Article

I’m rooting for Melinda French Gates to fix tech’s broken ‘brilliant jerk’ culture

Women in tech still face a shocking level of mistreatment at work. Melinda French Gates is one of the few working to change that.

2 days ago
I’m rooting for Melinda French Gates to fix tech’s  broken ‘brilliant jerk’ culture

Blue Origin has successfully completed its NS-25 mission, resuming crewed flights for the first time in nearly two years. The mission brought six tourist crew members to the edge of…

Blue Origin successfully launches its first crewed mission since 2022

Creative Artists Agency (CAA), one of the top entertainment and sports talent agencies, is hoping to be at the forefront of AI protection services for celebrities in Hollywood. With many…

Hollywood agency CAA aims to help stars manage their own AI likenesses

Expedia says Rathi Murthy and Sreenivas Rachamadugu, respectively its CTO and senior vice president of core services product & engineering, are no longer employed at the travel booking company. In…

Expedia says two execs dismissed after ‘violation of company policy’