**Tallinn**: Esgrid, an Estonian startup specialising in ESG risk management, has secured new investment led by 2C Ventures to expand into broader supplier management. The AI-driven platform now offers supplier onboarding and evaluation tools amidst evolving European sustainability regulations.
Tallinn-based startup Esgrid, specialising in Environmental, Social, and Governance (ESG) risk management, has secured fresh funding to broaden its product offering into the realm of supplier management. The recent financing round was led by new investor 2C Ventures, with continued support from existing backers Startup Wise Guys, Greenco Ventures, and Lemonade Stand.
Founded in 2023, Esgrid has quickly established itself by addressing the complexities faced by medium-sized businesses in managing ESG risks within their supply chains. The company’s AI-driven Software-as-a-Service (SaaS) platform automates the collection, analysis, reporting, and engagement of supply chain ESG data, achieving cost reductions for clients of up to 90 per cent. Esgrid’s clientele already includes several high-profile customers across Europe, among them multiple publicly listed firms.
With the new injection of funds, Esgrid plans to expand its service scope beyond ESG risk management to cover wider supplier management needs. This strategic pivot includes launching functionalities related to supplier onboarding, evaluation, and engagement. The company has initiated this expansion by introducing its first feature in the supplier management platform: an AI-powered supplier evaluation template generator. This tool allows users to create customised evaluation templates swiftly, thanks to Esgrid’s AI agent named Grid, which can produce a tailored template in approximately 30 seconds.
Oksana Tolmatšova, Esgrid’s co-founder and CEO, explained the company’s rationale behind the expansion, stating, “Working with our first customers, we quickly proved that we can cut costs by replacing manual supplier processes with digital workflows. While we started with supply chain sustainability management, it was clear there’s strong demand for a broader solution, covering supplier evaluation, document management, and communication. That’s why we’re expanding into wider supplier management. Our AI-first product adapts to each company’s size and needs, delivering the right solution at the right cost.”
Martin Reimand, Founding Partner at 2C Ventures, also commented on the investment decision: “In an era of growing geopolitical uncertainty, supply chain resilience has never been more critical. Esgrid has built an impressive platform for supply chain ESG risk management, and we’re confident in their ability to expand beyond ESG into broader supply chain risk areas. We are excited to support this strong team as they take the next step in their journey.”
This move from Esgrid comes at a time when the ESG landscape in Europe is undergoing notable changes. Recent regulatory developments have seen European Union authorities pause and simplify some of the continent’s most ambitious sustainability mandates. Most prominently, the implementation of the Corporate Sustainability Reporting Directive (CSRD) and the Corporate Sustainability Due Diligence Directive (CSDDD) has been put temporarily on hold following the European Parliament’s approval of the “Stop-the-Clock” proposal. Alongside this, the Omnibus simplification package has significantly raised the employee count threshold for CSRD applicability from 250 to 1,000, reducing mandatory reporting obligations for around 80 per cent of companies.
The combined effect of these regulatory adjustments has caused a recalibration in ESG strategies for many European businesses, pushing some startups in this space—including Esgrid—to innovate and broaden their services. Esgrid’s newly raised funding is being utilised to accelerate the development of solutions covering a wider array of supplier-related workflows, with an emphasis on artificial intelligence-supported automation to enhance efficiency.
As the ESG compliance environment evolves in Europe, Esgrid’s efforts to leverage AI technology for comprehensive supplier management underline a shift towards integrated, flexible solutions tailored to various corporate sizes and needs. The company’s expansion suggests an adaptive approach in a period marked by both regulatory shifts and ongoing demand for supply chain transparency and resilience.
Source: Noah Wire Services
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