StepChange Raises $4 Mn Funding To Empower Corporates In ESG Metrics Management

Enterprise sustainability platform StepChange has raised $4 Mn in its seed funding round led by BEENEXT and Global Founders Capital.

The funding round also saw participation from other institutional investors such as Genesia Ventures, Whiteboard Capital, Saison Capital, Seedstars, Antler, and Speciale Invest.

The startup said it would deploy proceeds from the funding to strengthen its product portfolio and further fuel its growth in India. The fresh capital will also be utilised to expand its footprint across key international markets and invest more in research and development (R&D).

StepChange also plans to use the funding to shore up its tech stack and scale up its technology, business development, sales and marketing teams. 

“We are grateful to our investors for their vote of confidence…We are proud to be the sustainability partner of choice for some of the largest Indian enterprises and plan to take our offerings international very soon,” StepChange cofounder and CEO Ankit Jain said.

Commenting on the fundraise, BEENEXT’s Anirudh Garg said, “StepChange’s innovative approach to corporate sustainability focuses on region-specific carbon accounting models and platforms. We believe this approach will be a game-changer in the global effort towards tackling climate change. We look forward to supporting StepChange as they continue to empower individuals, organisations, and other entities to make data-driven decisions for a sustainable future.” 

Founded in 2022 by former Ola executive Ankit Jain and Sidhant Pai, StepChange offers an integrated full-stack SaaS platform that enables large enterprises to manage their ESG metrics and reduce emissions across their supply chains.

StepChange’s cloud-based suite of products and decision-making tools enables corporates to measure, analyse and optimise their ESG performance. The startup claims to have successfully managed more than 25 Cr tCO2e (tonnes of carbon dioxide equivalents) so far across its key Indian clients. 

Speaking to Inc42, Jain said, “We have sophisticated analytics tools that understand what’s really happening within an organisation, and then we bring in outside data to marry with the existing data. This helps us understand how a company is doing against its sustainability goals and metrics, and automates not just internal analytics but also disclosure reporting, certification, among others.”

The startup claims to have the largest India-specific carbon accounting database, accounting for more than 75,000 emission factors for a wide range of products and services. StepChange works with some of the biggest names in the country, including ICICI Bank, ITC Limited, and State Bank of India. 

As per a NASSCOM report, the homegrown ESG and sustainability sector is projected to become a $150 Bn-$250 Bn market opportunity by 2030. Areas such as carbon offsetting and ESG analytics have emerged as key growth areas under this sector.

Amid increasing focus on ESG norms, investors are betting on sustainable and cleantech startups. In January this year, solartech startup Loom Solar bagged $2 Mn funding from US-based Social Investment Managers and Advisors (SIMA).

Last month, horticulture startup INI Farms secured $1.95 Mn from ESG-focused Aavishkaar Capital’s ESG First Fund