London-based software analytics platform Datamaran, which specializes in environmental, social and governance metrics, has closed a $33 million investment from Morgan Stanley’s Expansion Capital.
Since its launch in 2014, Datamaran offers a cutting-edge AI platform that assists companies in monitoring and mapping external ESG-related risks. The platform has real-time analytics across risks such as strategic risks, regulation, and reputational, each of which is unique to the customer and their supply chains. Its esteemed clients include giants in the industry, such as Dell, Cisco, Kraft Heinz, Deloitte, JPMorgan, and Pepsico, as well as organizations like the European Financial Advisory Reporting Group (EFRAG).
According to Lincoln Isetta, managing director, Morgan Stanley Expansion Capital: “Datamaran has been a proven market leader in providing the technology enabling companies to ingest ESG into their way of doing business. We are excited to support Datamaran’s next stage of growth as it extends further into the U.S. market and brings Fortune 500 companies to its client base.”.
The investment follows the close of a £11.7 million Series B round in 2022, with Datamaran reporting more than doubling its subscription revenue since then-a reflection of more than ever this growing demand for ESG governance and risk management solutions. This grows out of the increasing oversight requirements-for example, from international directives, like the EU’s Corporate Sustainability Reporting Directive or CSRD.
As a 10-year-old company, we are market leaders in strategic ESG; this investment will keep us ahead at the forefront of developing AI-powered software to match our clients’ growing needs,” said Marjella Lecourt-Alma, CEO and Co-founder of Datamaran. “In general, with the number of ESG reporting requirements surging, there are strong incentives for companies to improve their ESG governance and understand their material risks and opportunities.
This investment is pivotal as it sets Datamaran to reap the opportunities of changing landscape in ESG reporting and governance through companies already starting to focus on sustainability and compliance in business operations.