Dive Brief:

• Measurabl raised $93 million in series D funding, co-led by Energy Impact Partners and Sway Ventures, which will go toward expanding its ESG measurement, management and reporting capabilities for real estate, according to a press release. 
• The funding will also be used to integrate Measurabl’s asset optimization and enterprise ESG products, improve its customer support and partner network, and further expand internationally.
• The funding round was reportedly oversubscribed, highlighting the ongoing rise in demand for ESG tracking and reporting software as companies attempt to meet decarbonization targets. 

Dive Insight:

Measurabl’s funding capital raise will be used to continue consolidating ESG tools and services into an “all-in-one” real estate ESG technology platform. This will include integrating its enterprise ESG software and an asset optimization product it obtained through its acquisition of Hatch Data last year. 

The company’s platform is currently used to assess over 16 billion square feet of space, representing more than $2 trillion in assets across 93 countries, according to the release. 

The funding round included participation from Moderne Ventures, WVV, Broadscale, Suffolk Construction, Camber Creek, Salesforce Ventures, RET Ventures, Colliers and Lincoln Property Company. It follows the company’s $50 million Series C led by Energy Impact Partners in 2021. 

At $93 million, this latest round seems particularly large considering the current economic climate, with last month’s total proptech funding down 31% year over year, and down 36.4% year over year in terms of median funding, according to CRETI. 

Despite the drop in proptech investments, the demand for ESG tracking remains high. A recent smart building tech report by Toggled found that the majority of facility decision-makers have yet to meaningfully address decarbonization, with 64% of respondents saying they are still looking for ways to monitor and analyze their carbon footprint or greenhouse gas emissions. 

While Measurabl has a large market share of the U.S. ESG reporting market, it has several competitors. France-based Deepki, a company that tracks and analyzes ESG criteria for real estate portfolios, raised its own sizable $166 million Series C last March and recently partnered with CBRE in a deal that involved investment and service for its 2.9 billion managed square feet, according to Commercial Observer. U.S.-based Enertiv raised $9 million last year to develop an end-to-end ESG solution. 

While it seems the mad dash for ESG software is beginning to take off under pressure of looming regulatory sustainability mandates, Measurabl’s large ESG data inventory and ability to draw large investments gives it an advantage over other startups in the expanding market.