Founded in 2019, Montreal-based Novisto, a provider of sustainability reporting software, has raised $27 million in a Series C round. The company announced Tuesday that the funds will be used to accelerate product development and support its global expansion.
The latest investment signals growing market confidence in software solutions that help companies manage and report environmental, social, and governance (ESG) data. This comes amid tightening global disclosure requirements and rising pressure for corporate transparency.
More relevant than ever in turbulent times ahead, such tools are becoming essential for companies looking to stay compliant and competitive
Key Facts
- The Series C round was led by Inovia Capital, with participation from all previous investors including White Star Capital, SCOR Ventures, and Sagard.
- This brings Novisto’s total funding to $55 million, including an $8 million Series A in 2021 and a $20 million Series B in 2023 signalling not just investor confidence, but also about its purpose of creating value through ESG management, product maturity, and equity.
- The company offers an end-to-end platform that enables companies to collect, manage, audit, and disclose sustainability data aligned with global frameworks such as CSRD, ISSB, and TCFD.
- With over 1,200 ESG metrics across 22 industries, Novisto supports large enterprises aiming to streamline their ESG reporting and stay compliant with evolving reg
Background
Demand for ESG software solutions has surged as governments and financial regulators introduce stricter standards for non-financial disclosures. In the European Union, for example, the Corporate Sustainability Reporting Directive (CSRD) will soon affect over 50,000 companies. Similar ESG disclosure rules are being adopted in the U.S., U.K., and across Asia, driving demand for transparent, standardized corporate sustainability reporting. According to a new report by Verdantix the ESG reporting software market is projected to expand from US$1.3bn in 2023 to more than US$5.6bn by 2029.
Novisto’s platform enables companies to efficiently and securely collect, manage, approve, disclose and defend their sustainability data, all in one place.
Clients have quoted improved data quality, stakeholder confidence, and a reduction in time to complete reporting assessments of 50%.
What leaders are saying
Charles Assaf, CEO and co-founder of Novisto said,
We have seen that forward-thinking leaders are not waiting for full policy clarity to act on sustainability reporting and ESG compliance: they are acting now. The market demands it of a leading organisation, and it encourages transparent, accurate and decision-grade sustainability information.
We see a huge and growing global opportunity in front of us, underpinned by our current momentum, and spearheaded by senior leaders at global companies who are committed to making their businesses more resilient and sustainable.
The Series C round was led by software-focused investor Inovia Capital, with participation from all of Novisto’s previous investors including White Star Capital, SCOR Ventures, and Sagard.
Inovia Principal, Mia Morisset, said:
Novisto is trusted by leading global enterprises, a testament to the strength of its best-in-class product. Since its Series B, we’ve had the opportunity to witness firsthand how Charles and his team have built a uniquely positioned solution for success. We look forward to continuing to support Novisto as it scales.
Sanofi is a French pharma and healthcare major and also a prominent client. Its head of ESG Laurent Lhopitalier said
Sanofi is taking on some of the world’s most pressing challenges to build a healthier, more resilient world. Our partnership with Novisto has accelerated our journey towards our first CSRD aligned disclosures; and has established new standards for data governance and data quality.
Novisto’s client roaster includes The Emirates Group, Bell, Bombardier, EQ Bank, Intact, Meta, Moderna, and WSP, among others. It has partners like S&P Global and SLB, strengthening its data integration capabilities and credibility within both financial and industrial sectors.
What’s Next
Novisto will commit significant capital to expanding its sustainability reporting platform in Europe, as the continent’s streamlined regulation presents a huge market opportunity. The funds will support enhancing ESG software platform and scaling European operations. This expansion is driven by the increasing regulatory momentum around ESG disclosures in Europe.
