European regulation is making ESG (environmental, social, and governance) reporting a mandatory requirement, providing a significant boost for startups like Paris-based Apiday. This company’s platform is designed to assist private equity funds and blue-chip companies in tracking and managing their sustainability practices.
Asset management firms, particularly those in Europe, have become a primary focus for Apiday. The Sustainable Finance Disclosure Regulation (SFDR) means that it’s not just impact funds that need to closely monitor sustainability metrics; a wide range of firms are now paying attention to ESG reporting.
This marks a significant change from when Apiday was founded in 2021. Despite ongoing backlash against ESG, CEO Édouard Audi remains committed to using ESG for value creation rather than mere compliance. Audi even responded to Elon Musk’s criticism of ESG ratings, acknowledging their limitations but emphasizing their potential for creating value.
Recently, Apiday raised €10 million in a Series A funding round, which will support its growth in a competitive space that includes well-funded rivals like AlphaSense, Dataminr, and Sesamm, as well as FactSet-owned Truvalue Labs.
Apiday leverages AI to save time for its customers, similar to its competitors. However, it also offers human expertise, combining both elements to provide a competitive edge, according to Audi.
Another distinguishing factor is Apiday’s expansion strategy. With clients in 23 countries and 60% of its sales generated outside of France, the company plans to strengthen its presence in Europe by opening offices in Germany and the U.K. It also aims to enhance its offerings, expecting its team to grow from 40 to 70 employees over the next 12 months.
Audi hopes that the latest funding round will elevate Apiday’s profile among asset management firms. Before co-founding Apiday with former investor Charles Moury, Audi co-founded the ride-hailing company LeCab. His experience with LeCab, which performed well in some ESG aspects but lacked proper metrics during its sale, inspired him to enter the ESG space.
Investor engagement with ESG has evolved significantly since then. On the corporate side, ESG reporting is poised for another boost from the Corporate Sustainability Reporting Directive (CSRD). “The importance of ESG data will increase dramatically over the next few years,” said Stanislas Lot, the partner who led the funding round at Daphni.
Data is just the starting point. The real value lies in what can be done with it. Apiday helps its customers develop roadmaps, offering around 350 actions they can take to improve their ESG practices after becoming compliant. While funds have already progressed to this phase, Apiday expects corporates to follow suit, and it will be interesting to see how quickly this happens.
Apiday’s Series A backers include AENU, Daphni, Galion.exe, and SWEN Capital, along with existing investors Speedinvest and Revent.
