Deepki has raised €150m (£127.5m) in a series C round of funding.
The ESG data intelligence platform for the real estate sector was founded in 2014 and is now looking to consolidate in Europe and expand into the US.
The raise, the largest ever climate-tech software-as-a-service fundraising in the real estate sector, was jointly led by two London-based venture capital firms, Highland Europe and One Peak Partners. The firms specialise in category-leading, growth-stage, tech-enabled European companies. Other investors include Bpifrance, through its Large Venture fund, and Revaia, as well as existing investors Hi Inov and Statkraft Ventures.
Vincent Bryant, chief executive and co-founder of Deepki, said: “The global real estate sector needs to act now if it is to halve its emissions by 2030 and meet the net zero target by 2050. This represents a huge market opportunity for Deepki. Today’s new funding announcement means that Deepki can make a greater impact and support even more asset owners in taking on the climate change challenge.”
The new funding will help Deepki consolidate its position in Europe, secure more than 200 new hires in 2022, establish and grow the business in the US within the next 12 months, and carry out strategic acquisitions. Deepki has seen 100% year-on-year growth since 2019 and said it is confident that this trend will continue into 2022, as it benefits from the sector’s increasing focus on improving ESG performance and combating climate change.
Caroline Lebel, investment director at Bpifrance Large Venture fund, said: “In a short time, the business has established a market-leading position and is ready to take its ESG expertise to new markets such as the US.”
The platform enables clients to collect ESG data, get a comprehensive overview of their portfolio’s ESG performance, establish investment plans to reach net zero, improve energy efficiency, and assess results. It also allows users to report to key stakeholders. The platform is supported by carbon and ESG experts who partner with clients across data collection and analysis, through to ESG strategy definition and implementation.
Emmanuel Blanchet, chief operating officer and co-founder of Deepki, added: “Commercial real estate with poor ESG performance is already being affected by brown discounting and greater focus is being placed on properties which can adapt to more stringent requirements in terms of carbon emissions. As a result, we are seeing rapidly growing demand for our technology. The new investment means that we can take it to new markets and support the real estate sector as it plays its part in tackling climate change.”
The global cost for the sector to reach net zero by 2050 – the target set by the World Green Building Council – is currently estimated at $5tn a year.
Deepki has estimated that the value of the monitoring and analytics market required to achieve this goal will be $5bn to $10bn by 2025, with year-on-year growth of 20%.
Deepki operates in 38 countries, with 150 team members across offices in Paris, London, Berlin, Milan and Madrid. The company serves clients including Generali Real Estate, Allianz Real Estate, SwissLife Asset Managers and the French government, helping to make their real estate assets more sustainable at scale.
The firm’s backers were positive about Deepki’s future.
Humbert de Liedekerke Beaufort, managing partner at One Peak Partners, said: “Tackling climate change is the most significant issue facing the planet today. We are proud to support Deepki as it helps the real estate sector understand and take steps to cut its carbon emissions, thanks to its market-leading and innovative solutions.”
Valère Rames, partner at Hi Inov, added: “Deepki manages to do something very few SaaS firms are capable of: growing – growing rapidly – and in a remarkable way. Deepki plays a vital part in helping real estate asset managers and owners understand what they need to do to improve their environmental performance and protect their value. We are convinced that Deepki’s innovative platform will establish itself as a key enabler in meeting the global ESG challenge.”
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