Montréal’s Novisto secures $37.7M CAD Series C to expand ESG reporting platform across Europe, aiming for profitability and AI integration.
Amid global debates around ESG (Environmental, Social, and Governance) standards, Montréal-based tech firm Novisto is charging ahead with plans to scale across Europe. The ESG reporting software provider has secured $37.7 million CAD ($27 million USD) in a Series C funding round to deepen its footprint in the global market.
Aiming for Global Leadership in ESG Tech
“This is a global opportunity,” said CEO Charles Assaf, as Novisto eyes increasing demand driven by stricter European ESG regulations. The company already serves high-profile clients like Meta, Bombardier, Moderna, and Sanofi, helping them track, audit, and disclose ESG metrics in line with evolving compliance standards.
Why Europe, Why Now?
Assaf sees Europe as fertile ground as governments tighten ESG reporting requirements. “They need systems like ours,” he said. Novisto plans to double down by creating a European team as large as its North American operations.
The company, currently at 120 employees, will also invest in enhancing its platform’s AI capabilities and analytics, while pushing toward profitability.
Inside the Funding Round
The round, which closed in March, was led by Inovia Capital, with support from:
- White Star Capital (UK)
- Scor Ventures (France)
- Diagram & Portage Ventures (Canada)
The all-equity deal includes $25 million USD in primary and $2 million USD in secondary capital. Though valuation details remain private, Assaf described it as a “strong up round”, bringing Novisto’s total funding to $55 million USD to date.
Revenue Growth and Future Outlook
Since its $20M USD Series B two years ago, Novisto has nearly tripled its revenue, with annual recurring revenue now surpassing $10 million USD. Its growing client base and expanding feature set signal strong momentum in an otherwise volatile ESG landscape.
Facing ESG Backlash with Quiet Confidence
While ESG has faced criticism—especially in U.S. political circles—Assaf says demand for Novisto’s tools remains robust. “Our pipeline is still growing,” he noted. However, companies have become more cautious in how they talk about ESG publicly.
“Firms are still integrating sustainability, but they’re being less vocal about it,” he added. Much of the backlash has been tied to diversity, equity, and inclusion (DEI), but Assaf is confident sustainability will remain central to business strategy.
Built for the Long Term
Founded in 2019 by Assaf, Marian Borca, and Edouard Clement, Novisto positions itself as a comprehensive ESG platform tailored for enterprise-level corporations. It continues to gain trust from global giants and investors alike, even as public sentiment on ESG fluctuates.
Stay Connected
As ESG policy continues to evolve worldwide, Novisto’s story is one to watch.
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