The AI-driven ESG risk management platform GreenFi secured $2 Mn (INR 17.7 Cr) in a seed funding round organized by Transition VC, alongside contributions from undisclosed angel investors.

The startup based in Singapore announced that it will use the new funds to grow its worldwide distribution network, improve AI product features, and broaden operations throughout California, Europe, Southeast Asia, and the Middle East.

Established in 2023 by Barun Chandran, GreenFi offers a SaaS-driven AI platform that helps financial institutions and corporations recognize, track, and oversee environmental, social, and governance (ESG) risks, opportunities, and compliance requirements.

The platform consolidates ESG-related information from various sources — such as annual reports, corporate disclosures, alternative datasets, and media coverage — into one cohesive interface.

Leveraging no-code AI tools that integrate deep learning, natural language processing, and entity analysis, GreenFi assists clients in performing ESG due diligence, evaluating supply chain partners, and producing insights for decision-making.

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The company presently caters to clients in Singapore, India, Europe, and the US, such as United Overseas Bank (UOB), Kerala Infrastructure Investment Fund Board (KIIFB), and Wattsun Energy.

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GreenFi has taken part in international innovation initiatives like the UN Climate Tech Accelerator 2024, G20 TechSprint Brazil, RBIH Frictionless Finance Accelerator, and the UOB FinLab GreenTech Accelerator.

GreenFi's financing arrives as AI-driven sustainability and climate intelligence solutions attract increased investor interest. Industry estimates suggest that the global ESG software market is expected to surpass $5 billion by 2033, fueled by heightened compliance standards, increased investor oversight, and a desire for data transparency.

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In India, the SaaS ecosystem focused on cleantech and ESG is gaining traction, driven by the government's focus on sustainable and green development. Earlier this year, for example, EcoRatings, a cleantech startup driven by AI, secured $1 million through a combination of equity and grants from We Founder Circle, 888 VC, Vinners, Indigram Labs Foundation, and Google.