Articles by Transition Vc

Technology

AI risk management platform GreenFi raises $2 million in round led by Transition VC

Greenfi, an AI-powered ESG risk management platform, has raised its first round of $2 million led by Transition VC. The Kerala-based startup’s artificial intelligence (AI)-powered environmental, social, and governance (ESG) compliance tool helps companies automate risk management and provide personalised, role-based recommendations on improving the user’s sustainability performance and addressing flagged risks.For instance, if a bank is investing $100 million in a solar power plant project, instead of having 20 people manually collecting data over weeks or months and spending half a million dollars on consultants, Greenfi claims to automate the entire due diligence process and provide actionable recommendations in real-time. "We're actively on the lookout for good talent, and fundraising comes with a lot of excitement (and) responsibilities,” founder and CEO Barun Chandran told ET.Founded in 2023, the startup has clients in Singapore, Japan, and the UK and caters to industries like fashion and apparel, food and agriculture, retail, banking and financial services, and manufacturing.The company currently operates with a lean team of 16 people, down from 26 after adopting AI systems that now handle over 60% of its operations. The company retained core ESG subject matter experts and developers for quality oversight and cut back on engineering and research teams. Going forward, it plans to expand in sales, marketing, and branding roles to support its global growth plans.“As ESG risks increasingly influence underwriting and financial performance, GreenFi stands out for building an end-to-end, AI-driven platform that helps financial institutions monitor, assess, and underwrite their customers more intelligently,” said Mohammed Shoeb Ali, managing partner and cofounder, Transition VC.The startup claims to be in direct competition with McKinsey, KPMG, and PWC, replacing consultants with this tool.