With European regulations now making ESG reporting a mandatory requirement, startups like Apiday are seizing the opportunity to cater to private equity funds and blue-chip companies looking to enhance their sustainability practices.
Apiday has particularly targeted asset management firms, especially in Europe, as the Sustainable Finance Disclosure Regulation (SFDR) has pushed all types of companies to focus on ESG reporting, not just impact funds. CEO Édouard Audi acknowledges the limitations of ESG ratings but emphasizes Apiday’s focus on leveraging ESG for value creation rather than just compliance.
Recently securing €10 million in a Series A funding round, Apiday aims to accelerate its growth in a competitive market with well-funded rivals like AlphaSense, Dataminr, Sesamm, and FactSet-owned Truvalue Labs. The company stands out by combining AI technology with human expertise, giving it an edge over both traditional consultants and new competitors.
Apiday’s expansion plans include doubling down on Europe, with offices opening in Germany and the U.K. The company also aims to enhance its overall offering, expecting its team to grow from 40 to 70 employees in the next year. Audi believes the recent funding round will further solidify Apiday’s reputation among asset management firms.
Co-founded by Audi and Charles Moury, Apiday was inspired by Audi’s experiences at ride-hailing company LeCab, where ESG considerations were undervalued during a sale due to a lack of metrics. The changing investor landscape and impending Corporate Sustainability Reporting Directive (CSRD) signal a growing emphasis on ESG data, increasing its importance in the coming years.
Apiday not only provides data but also assists clients in developing actionable roadmaps for improving their ESG practices post-compliance, offering around 350 specific actions to drive positive change. While funds have already taken steps, it remains to be seen how swiftly corporates will follow suit.
Backed by investors like AENU, Daphni, and SWEN Capital, Apiday’s Series A funding underscores its commitment to driving innovation and progress in the ESG reporting space.