Datamaran Raises $33 Million to Enhance ESG Software Offerings

Datamaran Secures $33 Million Growth Financing

Datamaran announced a successful funding round, securing an impressive $33 million in Series-C financing. This funding was provided by investment funds managed by Morgan Stanley Expansion Capital, reinforcing Datamaran's leadership within the ESG software landscape.

Accelerating Growth in ESG Software

The new funding will be directed towards accelerating growth initiatives in the U.S. and Europe, with a particular emphasis on advancing generative AI technologies to enhance its offerings.

Substantial Increase in Subscription Revenue

In the recent past, specifically within a short span of 18 months since the previous funding round, Datamaran has seen a remarkable increase in its subscription revenue. The firm has doubled its annual recurring revenue (ARR), underscoring a significant rise in demand for its governance and risk management solutions, particularly from C-Suite executives.

Powerful Tools for ESG Compliance

Datamaran provides a robust software platform that empowers clients to track and manage over 400 external risk factors. By utilizing Datamaran's solutions, organizations can transform ESG compliance into a strategic advantage rather than merely a regulatory obligation.

Leadership Perspective

Marjella Lecourt-Alma, the CEO and Co-founder of Datamaran, expressed optimism about the future, stating, "As a 10-year-old company, we are the trailblazers in strategic ESG. This investment will enable us to stay at the forefront of innovation in AI-powered software to serve our clients’ growing needs." She emphasized the importance of companies adapting to a wave of new ESG reporting requirements.

A Client-Centric Approach

Datamaran currently supports nearly 200 clients, including global brands such as Dell, Cisco, AB InBev, and Deloitte. These clients utilize the platform to navigate over 4,000 ESG regulations, benefiting from a comprehensive database that allows benchmarking and strategic target setting to improve efficiency and profitability.

Investment Rationale

Lincoln Isetta, Managing Director at Morgan Stanley Expansion Capital, commented on the partnership, highlighting Datamaran's exceptional growth and its role as a leader in enabling sustainable business practices. He remarked on the importance of accountability in this era when stakeholders demand more transparency from corporations. This financing will support Datamaran's objective of expanding its reach, especially into the U.S. market, while also strengthening its client roster with additional Fortune 500 companies.

Navigating Increasing Regulations

The regulatory landscape is shifting, with international standards like the EU's Corporate Sustainability Reporting Directive mandating rigorous oversight of ESG efforts from C-suite executives. Datamaran equips its clients with innovative tools to enhance governance and ensure rapid adaptation to the evolving ESG scenario.

Previous Funding and Future Directions

Before this current successful round, Datamaran garnered attention in its previous financing initiatives led by Fortive (NYSE: FTV) and joined by major players like American Electric Power (NASDAQ: AEP). Datamaran's proactive approach to risk management continues to resonate as businesses seek to align with evolving ESG standards.

About Datamaran

Datamaran stands out as a premier software analytics platform dedicated to identifying and monitoring external risks, especially in the ESG space. Trusted by leading companies and acknowledged by top-tier organizations like the European Financial Advisory Reporting Group (EFRAG), Datamaran continually innovates its solutions to provide timely analytics related to strategic and reputational risks.

About Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is a growth-oriented investment platform that seeks opportunities in late-stage growth equity and credit within dynamic sectors such as technology and healthcare. With a rich legacy spanning over three decades, the platform has successfully executed investments in numerous companies, leveraging the extensive Morgan Stanley network to foster growth.

Frequently Asked Questions

What is the purpose of the $33 million funding raised by Datamaran?

The funding will be used to accelerate growth in the U.S. and Europe and enhance initiatives related to generative AI.

How have Datamaran's revenues changed since the last funding?

Datamaran has more than doubled its subscription revenue in the past 18 months, showcasing significant demand for its ESG solutions.

Who are some of Datamaran's notable clients?

Datamaran's client base includes major companies such as Dell, Cisco, AB InBev, and Deloitte, among others.

What is Datamaran's approach to ESG software?

Datamaran provides a platform that allows clients to monitor external risk factors and supports them in navigating complex ESG regulations.

What are the implications of the European Union’s regulations on Datamaran's offerings?

These regulations increase the need for companies to adopt effective governance tools, which Datamaran's platform is designed to facilitate, ensuring compliance and accountability.

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