Doconomy, a leading player in climate technology that helps banks, brands and consumers to measure, understand and reduce their environmental impact, has raised $19m of equity capital to accelerate its goal to help one billion people each cut one tonne of carbon emissions per year.
The funding round was led by CommerzVentures, with additional support from two new investors, Ingka Investments – part of largest IKEA retailer Ingka Group – and Citi Ventures, Citigroup’s venture capital team. Existing investors, Mastercard and Ålandsbanken also participated. The new investors have global reach and expertise in banking and consumer goods, with the potential to create significant shifts in consumer behavior. For example, Ingka Group operates IKEA retail in 32 markets with hundreds of millions of customers.
Doconomy’s technology is currently used in 30 countries by some of the world’s leading banks and brands to help their customers track the environmental impact of what they buy, promoting more sustainable choices. These Include major financial services firms such as BNP Paribas, Klarna, Nordea and Standard Chartered. The company’s products can already reach over half a billion customers globally and it aims to make its services available in 20 additional markets in 2022. It has pioneered a number of game-changing products including the financial transaction API, through which companies such as Mastercard can enable their customers to track the environmental footprint of each purchase they make and set themselves Individual carbon budgets. It also developed the 2030 Calculator, a tool that allows brands to quantify the carbon footprint of the products they manufacture using a common universal scoring system, levelling the playing field by giving small, local challenger brands a shared tool for creating awareness and transparency.
At COP26, Doconomy in partnership with the United Nations Climate Change (UNFCCC) launched the Carbon Lifestyle Calculator, helping consumers to measure the Impact generated from their lifestyle choices in over 117 countries.
The funding will accelerate Doconomy’s continued expansion, recruit new talent to join its rapidly growing team and support the further development of its Impact Applied portfolio; enabling environmental impact calculations on products, financial transactions, lifestyle and corporations to inspire further climate action worldwide.
“With Doconomy the power of the conscious consumer is unleashed. Corporates are increasingly acting on the much-needed shift to greater transparency and Doconomy facilitates this at the corporate and product level to empower behavior change. In addition to the coalition of corporate climate champions that already work with Doconomy, we are thrilled to have the support of corporate venture teams at Ingka Group and Citi who recognize the potential and urgency of our mission.”
“As corporates and financial institutions work towards a net-zero carbon future, climate fintechs that leverage data and technology to measure environmental impact can help accelerate those efforts and provide a strategic advantage” explained Jelena Zec, SVP, Venture Investing at Citi Ventures. And she adds:
“Citi Ventures has been impressed by Doconomy’s team, proprietary methodology and proven ability to build partnerships to deliver tangible climate action. We look forward to supporting them as they develop actionable solutions to help companies, institutions and consumers address climate change.”
Doconomy represents not only Citi Ventures’ first investment in the climate fintech space but also the first investment in the Nordics. And Citi Ventures are ambitious for more. With Doconomy as an investment, Citi Ventures is looking with interest at developments in the Nordic region with a focus on fintech and climate fintech space.
“We are delighted to invest in Doconomy, which is a market leader in the applied impact field and a company that wants to create a positive impact on the environment. Both Ingka and Doconomy have great ambitions in shaping tomorrow’s sustainable homes through new products and services. With Doconomy we see a big potential in developing solutions to support people and products and services suppliers to measure, understand and reduce climate impact.”, says Krister Mattsson, Managing Director of Ingka Investments, Ingka Group
“This new funding from Ingka Investments and Citi Ventures represents an exciting vote of confidence and a major reinforcement of Doconomy’s ability to introduce impact metrics as a tangible and actionable way for millions of users to understand and reduce their environmental impact.”