IntegrityNext, a supply chain sustainability and compliance monitoring platform, has secured a whopping €100 million ($109 million) investment in its first-ever funding round.
The investment was led by one single investor, EQT Growth, which is a venture capital firm with a focus on primary tech sub-sectors, including enterprise, con/prosumer, health, and climate, according to a Thursday report by TechCrunch.
IntegrityNext will use the new funding to expand operations and build more capabilities across the US and Europe to meet the growing demand in those markets.
The Munich-based tech startup is seeking to make supply chains more sustainable with better environmental and sustainability governance (ESG) compliance and oversight.
Furthermore, its solution enables enterprises to assess risk and monitor a large portion of their supply chain for ESG metrics and compliance, allowing them to meet stakeholder demands, societal needs, and regulatory requirements.
“The critical importance of ESG is not a new concept to modern businesses,” Martin Berr-Sorokin, CEO and co-founder of IntegrityNext, said in a comment.
“However, as a raft of regulatory frameworks – like Germany’s LkSG or the EU’s CSRD – begin to take effect, supply chain transparency and sustainability is evolving from a nice-to-have to a must-have.”
IntegrityNext Seeks to Tackle ESG Compliance Issues
Businesses across various jurisdictions are increasingly under pressure to report on their ESG strategy and carbon footprint, and to become more sustainable.
According to a recent report by the International Federation of Accountants (IFAC), almost all major global companies disclosed their ESG matters and strategy in 2022.
However, becoming ESG complaint is not a simple task. It requires strategy reimagination and embedding ESG throughout the company. For many businesses, it can be overwhelming to know where to start.
In a bid to tackle these issues, IntegrityNext has developed a sustainability software platform that provides an automated way for customers to monitor and certify their supply chain for ESG risks, according to Dominik Stein, Partner in the EQT Growth.
“Their cutting-edge product and large footprint in their home market of Germany positions them well to expand across Europe, as they have already built a significant proprietary supplier database,” Stein added.
IntegrityNext Already Has Over 200 Clients
Since its launch seven years ago, IntegrityNext has grown impressively.
The company now counts more than 200 strong enterprises as clients, which include Siemens Gamesa, Infineon, and SwissRe, with a supply chain database that monitors close to 1 million suppliers across 190 countries.
All of these alone make the company one of the leading ESG certification software players in Europe.
IntegrityNext CEO Martin Berr-Sorokin, who co-founded the company with Simon Jaehnig and Nick Heine, said the company has seen notable interest from investors despite the fact that they had never taken outside funding.
Berr-Sorokin added that while the company has been profitable, it needed to raise more funds in order to strengthen its next growth phase. He said:
“We were getting to the next phase we need support for hiring, extending our network, sales and marketing, and going into new markets in Europe and the U.S. We didn’t have to do it. It was an option, and we feel lucky to have done it.”
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