Apiday, a Paris-based startup, is capitalizing on the growing demand for ESG reporting brought about by European regulation. The company’s platform targets private equity funds and blue-chip companies that need to track and pilot sustainability practices. With the implementation of the Sustainable Finance Disclosure Regulation (SFDR), ESG reporting has become essential for all types of firms, not just impact funds.
However, this increased focus on ESG reporting has also led to some backlash. CEO Édouard Audi acknowledges the limitations of ESG ratings and agrees with Elon Musk’s criticism. Nevertheless, Apiday’s goal is to use ESG for value creation rather than mere compliance.
To accelerate its growth in a competitive space, Apiday recently raised €10 million in a Series A funding round. The funds will enable the company to leverage AI technology and human expertise to save time for its customers. This combination of AI and human knowledge gives Apiday an edge over its competitors, both old and new.
Apiday’s expansion plan includes doubling down on Europe and opening offices in Germany and the U.K. The company aims to improve its offerings overall and expects its team to grow from 40 to 70 employees in the next year. The recent funding round is also expected to enhance Apiday’s reputation among asset management firms.
CEO Édouard Audi’s previous experience co-founding ride-hailing company LeCab inspired him to enter the ESG space. He realized that LeCab’s strong performance in certain ESG-related aspects was not properly taken into account during its sale due to a lack of metrics in those areas.
Looking ahead, the importance of ESG data is set to increase dramatically with the implementation of the Corporate Sustainability Reporting Directive (CSRD). Apiday recognizes that data is just the beginning and focuses on helping its customers develop actionable roadmaps to improve their ESG practices after achieving compliance.
The Series A funding round was led by AENU, Daphni, Galion.exe, and SWEN Capital, with participation from existing investors Speedinvest and Revent. With its unique approach to ESG reporting and its expansion plans, Apiday is well-positioned to thrive in the evolving landscape of sustainable finance.
