Morgan Stanley Invests $33 Million in ESG Risk Management Software Provider Datamaran

ESG-focused software analytics platform provider Datamaran announced a $33 million investment from Morgan Stanley’s late-stage growth equity private investment platform Morgan Stanley Expansion Capital.

Datamaran said that it will use the new capital to accelerate its growth in the U.S. market, and to advance initiatives in generative AI.

Founded in 2014, London-based Datamaran provides an AI-powered software analytics platform enabling companies to identify and monitor external risks, including ESG, offering real-time analytics on strategic, regulatory, and reputational risks, specific to users’ businesses and value chains. Datamaran’s platform users include clients such as Dell, Cisco, KraftHeinz, Deloitte, JPMorgan and Pepsico, and organizations such as the European Financial Advisory Reporting Group (EFRAG).

Lincoln Isetta, Managing Director of Morgan Stanley Expansion Capital, said:

“Datamaran is a proven market leader in providing technology that enables companies to embed ESG into their business practices. We’re excited to support Datamaran’s next stage of growth, penetrating further into the U.S. market and adding more Fortune 500 companies to an already impressive client roster.’’

The new investment follows an £11.7 million Series B funding round completed by the company in 2022. Since its previous funding round, Datamaran has more than doubled its subscription revenue, with the company noting increasing demand for its ESG governance and risk solutions, as C-Suites and boards face growing requirements of oversight over ESG issues from international directives, such as the EU’s Corporate Sustainability Reporting Directive (CSRD).

Marjella Lecourt-Alma, CEO and Co-founder of Datamaran, said:

“As a 10-year-old company, we are 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. With the number of reporting requirements on ESG increasing exponentially, there is a clear incentive for companies to double down on ESG governance and recognize their material risks and opportunities.’’