Datamaran secures $33million growth funding from Morgan Stanley Expansion Capital

West Hill portfolio company, Datamaran, has announced the completion of a $33million equity investment from Morgan Stanley Expansion Capital, validating its global leadership in the ESG software sector.

The proceeds of the primary raise will be utilised to accelerate growth across the US and Europe, as well as advancing initiatives in generative AI to potentially propel the Company’s future valuation.

A proportion of the funds raised acquired secondary shares, facilitating a partial exit for some West Hill investors at 5.1x-6.25x the original EIS investment. 

Since the NYSE quoted Fortive led the Company’s previous financing 18 months ago, Datamaran has seen recurring subscription revenues increase by 100%. Approaching 200 clients, including a host of top tier names such as Dell, Cisco, AB Inbev, Deloitte and Pepsico, utilise the platform in order to prepare for and comply with evolving ESG regulations. 

The platform automates the monitoring of over 400 external risk factors and transforms ESG compliance from a cost centre into a value driver. 

Datamaran CEO, Marjella Lecourt-Alma commented:

‘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 ESG reporting requirements increasing exponentially, there is clear incentive for companies to double down on ESG governance and know their material risks and opportunities.’

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

‘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 even greater accountability from global enterprises.

We are excited to partner with Marjella and her team to support the next stage of growth, penetrating further into the US market and seeking to add more Fortune 500 companies to an already impressive client roster.’

The investment round marks the second partial exit opportunity for West Hill investors, who originally invested in Datamaran at a post money valuation of around £9million. That said, West Hill investors still retain a significant equity interest in what could become the best-in-class ESG software platform globally, providing potential to achieve stellar financial returns in due course.