Berlin-based Atlas Metrics, an ESG data platform, announced it had raised €12.2 million ($13.59m) in a series A funding round on Monday led by MMC Ventures.
According to a company statement, other participants include b2venture, Cherry, and Redstone.
The fresh capital will be spent on expanding the company’s team, enhancing its product offerings, and entering new markets, aiming to simplify ESG compliance for businesses globally.
The statement further said the company is planning to tap the €88 million holistic performance market.
This market considers the full spectrum of ESG criteria to assess a company’s overall performance rather than focusing on isolated metrics.
Demand side scenario
The statement said the EU’s regulatory pressure for ESG reporting and compliance is rapidly growing.
By 2025, over 62,500 organizations must meet rigorous annual requirements, including double materiality assessments, corporate carbon footprint accounting, and audit-ready corporate sustainability reporting directive reporting.
A German company with €100 million in revenue is estimated to incur an annual cost of €250,000 for manual compliance and a €5 million fine for non-compliance.
Atlas Metrics focuses on helping companies meet these requirements by automating and streamlining CSRD reporting and all related regulatory obligations.
In effect, the company provides an all-in-one platform for ESG compliance and sustainability performance management.
“For all businesses across all industries, ESG reporting and compliance has become a necessary part of operations,” said Atlas Metrics Founder and CEO Wladimir Nikoluk in the statement.
“But it is costly and risky to manage. This funding will allow us to enhance our product offerings, not only to simplify ESG compliance but also to turn sustainability data into a competitive advantage.”
Improving clientele
KfW Capital, one of Europe’s largest investors, has chosen the platform to track its portfolio of over 100 funds and 1,300 portfolio companies.
Through its partnership with DG Nexolution, a key provider of digital solutions within the German cooperative network, up to 700 banks and their business customers can use the platform.
Leading consultancies like PwC Belgium and TK Moore also provide access to Atlas Metrics in parallel with their sustainability services to help customers automate otherwise manual tasks.
“Atlas Metrics is at the forefront of a critical shift, accelerated by regulatory tailwinds, toward greater transparency and accountability in business practices,” said Oliver Richards, partner at MMC Ventures, in the statement.
