Datamaran Secures $33M Growth Financing from Morgan Stanley Expansion Capital; More Than Doubles ARR Since Series B

LONDON & NEW YORK--(BUSINESS WIRE)--Sep 19, 2024--

Datamaran announced today the completion of $33 million in Series-C financing from investment funds managed by Morgan Stanley Expansion Capital, validating its global leadership in the ESG software market.

The proceeds will be used to accelerate growth in the U.S and Europe and further advance initiatives in generative AI.

In the 18 months since its last funding round, Datamaran has more than doubled its subscription revenue, fueled by rapidly increasing demand for its ESG governance and risk solutions from C-Suite executives. The company’s software platform allows clients to monitor over 400 external risk factors and transform ESG compliance from a cost center into a value driver.

“As a 10-year-old company, we are the trailblazers in strategic ESG, and this investment will enable us to stay at the forefront of innovation in AI-powered software to serve our clients’ growing needs,’’ said Marjella Lecourt-Alma, CEO and Co-founder of Datamaran. “With the number of ESG reporting requirements increasing exponentially, there is a clear incentive for companies to double down on ESG governance and know their material risks and opportunities.’’

Datamaran’s platform allows its nearly 200 clients, including Dell, Cisco, AB InBev, Deloitte, and Pepsico, as well as organizations such as the European Financial Advisory Reporting Group (EFRAG), to prepare for and comply with the more than 4,000 ESG regulations and standards globally. In addition, its database of 9,000 companies lets customers easily benchmark themselves, set targets, and achieve the best outcomes to drive efficiency and profitability.

Commenting on the financing, Lincoln Isetta, Managing Director of Morgan Stanley Expansion Capital, said: “Datamaran has exhibited impressive growth and capital efficiency since we first met them over two years ago. They are a market leader in providing technology that enables companies to embed ESG into their business practices, which is becoming more important as customers, stakeholders and regulators demand ever greater accountability from global enterprises. We are excited to partner with Marjella and her team to support Datamaran’s next stage of growth, penetrating further into the U.S. market and seeking to add more Fortune 500 companies to an already impressive client roster.”

International regulations such as the European Union’s Corporate Sustainability Reporting Directive are increasingly requiring proof of C-suite ownership and board oversight of ESG issues. Datamaran's clients benefit immediately from the adoption of its platform as a governance tool that enables accountability, while ensuring agility as the ESG landscape undergoes rapid change.

Datamaran’s previous financing round was led by Fortive (NYSE: FTV ) with participation from American Electric Power (NASDAQ: AEP ).

About Datamaran

Datamaran is the leading software analytics platform that identifies and monitors external risks, including ESG. In addition to being trusted by blue-chip companies and top-tier partners, it has been recognized as best practice by the European regulator EFRAG for bringing a data-driven business process for materiality analysis and risk monitoring in-house - at any time. Datamaran's patented technology offers real-time analytics on strategic, regulatory, and reputational risks, specific to your business and value chain. Learn more at Datamaran.com

About Morgan Stanley Expansion Capital

Morgan Stanley Expansion Capital is the growth-focused private investment platform within Morgan Stanley Investment Management. Morgan Stanley Expansion Capital targets late-stage growth equity and credit investments within consumer, technology, healthcare, and other high-growth sectors. For over three decades, Morgan Stanley Expansion Capital has successfully pursued growth investment opportunities and has completed investments in over 200 companies, leveraging the global brand and network of Morgan Stanley.

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Katherine Snyder,katherine@stuloeser.com| Grace Smoker,grace@stuloeser.com

KEYWORD: NEW YORK EUROPE UNITED STATES UNITED KINGDOM NORTH AMERICA

INDUSTRY KEYWORD: PROFESSIONAL SERVICES ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) DATA ANALYTICS TECHNOLOGY SOFTWARE FINANCE ARTIFICIAL INTELLIGENCE

SOURCE: Morgan Stanley Expansion Capital

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