European regulation is making ESG reporting an essential requirement rather than just a desirable option. This presents a favorable opportunity for startups like Apiday, based in Paris. Their platform is designed to cater to private equity funds and well-established companies that require efficient monitoring and implementation of sustainability practices.
Apiday has shown a strong interest in asset management firms, particularly those based in Europe. Thanks to the Sustainable Finance Disclosure Regulation (SFDR), sustainability metrics are now on the radar of various companies, not just impact funds. ESG reporting has become a priority for a wide range of firms.
This has led to a shift in the overall landscape since Apiday’s inception in 2021, with the emergence of an ESG backlash. The CEO, Édouard Audi, personally responded to Elon Musk’s criticism of ESG ratings and acknowledged their limitations. However, his main emphasis with Apiday is centered around utilizing ESG for the purpose of value creation rather than just meeting compliance requirements.
Apiday has recently secured €10 million in a Series A funding round, enabling the company to expedite its growth in a highly competitive marketAlphaSense, Dataminr, Sesamm, and FactSet-owned Truvalue Labs are notable competitors in this market.t.
Similar to these players, Apiday utilizes AI technology to help its customers save valuable time. However, similar to traditional consultants, it also provides valuable human expertise. According to CEO Édouard Audi, it is the unique combination of both factors that sets it apart from both established and emerging competitors, as he explained in an interview with Eltrys.
Yet another factor that sets it apart is its strategic growth strategy. Having a strong global presence with clients in 23 countries and a significant portion of sales generated internationally, the company is strategically expanding its reach in Europe by opening offices in Germany and the U.K. With the goal of enhancing its overall offering, the company anticipates a significant expansion of its team from 40 to 70 employees within the next year.
Audi is optimistic that the recent funding round of Apiday will enhance the company’s reputation among asset management firms.
Prior to co-founding Apiday alongside former investor Charles Moury, Audi had also co-founded the ride-hailing company LeCab. This experience served as a catalyst for his venture into the ESG (Environmental, Social, and Governance) space. According to Audi, LeCab was outperforming its competitors in certain ESG-related areas. However, the sale of LeCab did not adequately consider these factors due to a lack of measurable metrics in these areas.
Once again, the manner in which investors approach ESG has evolved over time. Additionally, the corporate realm is set to receive a further push in ESG reporting with the introduction of the Corporate Sustainability Reporting Directive (CSRD). “Over the next few years, the significance of ESG data is set to soar,” stated Stanislas Lot, the partner spearheading the round at Daphni.
Data is just the starting point, though. The true value lies in the potential it holds. For example, Apiday helps its clients create comprehensive plans that consist of around 350 steps to enhance their ESG practices once they have achieved compliance. It seems that funds have already entered that phase, and Apiday anticipates that corporates will soon follow. It will be intriguing to observe the speed at which they do so.
The Series A funding round has attracted notable investors such as AENU, Daphni, Galion.exe, SWEN Capital, Speedinvest, and Revent.