
Novisto, a Montréal-based ESG reporting platform, has secured $37.7 million CAD ($27 million USD) in a Series C funding round to fuel its European expansion and enhance product capabilities.
The round was led by Inovia Capital and supported by existing investors including White Star Capital, Scor Ventures, Diagram Ventures, and Portage Ventures.
Addressing growing ESG compliance needs
Founded in 2019, Novisto provides software that enables large enterprises to collect, audit, and report environmental, social, and governance (ESG) data. Its client base includes global heavyweights such as Bell, Meta, Moderna, Bombardier, WSP, and Sanofi.
With new European ESG disclosure regulations on the horizon, the company plans to double its headcount overseas and match its North American team in size. CEO Charles Assaf noted that businesses see ESG as a long-term value driver, despite growing political backlash in markets like the U.S.
Revenue growth and product roadmap
Since raising its Series B round two years ago, Novisto has nearly tripled its revenue and now generates well over $10 million USD in annual recurring revenue. The 120-person team is now investing in generative AI integration, analytics enhancements, and broader platform capabilities with the goal of achieving profitability.
The Series C round included $25 million in primary capital and $2 million in secondary, and brings Novisto’s total raised to $55 million USD. The company did not disclose its post-money valuation but described it as a “strong up round.”
Demand remains high, despite ESG headwinds
Although political and cultural headwinds in the U.S. have tempered public discourse around ESG, Novisto claims that enterprise interest and pipeline momentum remain strong. Assaf said many clients have simply become less vocal about ESG commitments but have not changed long-term strategies.
“Large companies know that sustainability is a key lever for business value creation,” Assaf said. “What they are doing is being less vocal about it because of the unfolding backlash.”
As Novisto continues expanding globally, its bet is clear: ESG may evolve, but corporate sustainability is here to stay.