Takeaways

• GreenFi has raised $2 Mn in seed funding to scale its AI-driven ESG risk management platform and expand globally.
• The startup plans to enhance its AI capabilities and strengthen distribution across key markets, including the US, Europe, Southeast Asia, and the Middle East.
• Investor interest in AI-enabled ESG tools continues to rise, supported by stricter compliance norms and demand for transparent data.

GreenFi, an AI-enabled ESG risk platform, has secured $2 Mn in a seed funding round led by Transition VC, with participation from undisclosed angel investors. The fresh seed funding will support the startup’s expansion as it looks to strengthen its position in the fast-growing sustainability software market.

The Singapore-headquartered company said it plans to use the new investment to expand its global distribution network, enhance product capabilities, and grow its presence across California, Europe, Southeast Asia, and the Middle East. The funding marks a key step in GreenFi’s efforts to scale its AI-driven ESG solutions at a time when demand for advanced climate and compliance tools is rising worldwide.

Read More: AI Meets ESG: Compliance & Risks Launches Next-Gen Sustainability Solution

Established in 2023 by Barun Chandran, GreenFi offers a SaaS-based AI platform that helps financial institutions and corporates identify, monitor, and manage ESG risks, opportunities, and compliance requirements. The platform consolidates ESG-related information from annual reports, corporate filings, alternative datasets, and media sources into a single interface.

GreenFi’s technology uses no-code AI modules that combine deep learning, natural language processing, and entity extraction. This allows clients to perform ESG due diligence, screen supply chain partners, and generate real-time insights for decision-making. The company currently serves customers in Singapore, India, Europe, and the US, including United Overseas Bank (UOB) and Wattsun Energy.

The startup has also gained visibility through global innovation programmes, including the UN Climate Tech Accelerator 2024, G20 TechSprint Brazil, RBIH Frictionless Finance Accelerator, and the UOB FinLab GreenTech Accelerator. These engagements have helped position GreenFi as a rising player in the climate intelligence and ESG software space.

Also Read: Responsible AI Takes Shape as EHS and ESG Teams Embrace Digital Transformation

GreenFi’s latest round comes amid strong investor interest in AI-based sustainability technologies. Industry estimates project the global ESG software market to surpass $5 Bn by 2033, driven by tighter disclosure norms, increasing investor scrutiny, and the need for more reliable ESG compliance tools.

Follow more news and views via our Sustainable Finance & Technology and Featured Articles sections, and stay updated on the top ESG events to attend in 2025 for industry insights and networking.

Source: Inc42