EcoVadis valued at over USD 1bn in Astorg, BeyondNetZero-led round

The deal values the sustainability data SaaS company at more than USD 1bn, according to Benoit Ficheur, partner at Astorg. The round, which also saw the participation of Singapore-based GIC and Princeville Capital's Climate Technology Fund, brings the total raised by the company to USD 725m to date.

The investment will support EcoVadis' global expansion plans and climate impact as well as bolster its AI offering and machine learning capabilities, according to a press release. Furthermore, the company will make strategic acquisitions.

CVC Growth Partners II, which invested USD 200m in EcoVadis in January 2020, remains the largest institutional shareholder in the business.

Rhea Hamilton, managing director at BnZ, told Unquote that the sponsor encountered EcoVadis through an internal screening process of areas such as carbon, accounting and sustainability ratings. "Our objective was to find a company involved in the supply chain and provide ESG-related solutions that we can help scale. EcoVadis was on the top of the list. We had the opportunity to meet the management team last year and we reengaged with the company earlier this year ahead of their fundraise, which prepared us well for it."

BnZ can provide follow-on capital if required. The firm will support the business to grow geographically, particularly in North America as well as continue to automate the business and scan opportunities for strategic acquisitions to expand the product offering, said Hamilton.

Astorg's Ficheur told Unquote that the sponsor co-led with BnZ as it was the obvious partner. "They, like us, invest in high-quality companies and have a global reach."

Asked about how the fresh capital will be used, Ficheur said EcoVadis will add new products and focus on expanding in Asia organically as well as growing in the US."

EcoVadis expects to exceed USD 100m annual recurring revenues in 2022, according to Ficheur.

Astorg was the first private equity client of EcoVadis, using its services to assess and measure portfolio companies' ESG performance and to raise sustainability-linked financing, according to a press release.

Astorg invested through Astorg VII, which held a first and final close in January 2019 on EUR 4bn.

BnZ has made four investments to date including in US-based 80 Acres Farm and 09 Solutions.

Previous investments
In January 2020, EcoVadis received USD 200m from CVC Growth Partners II, the growth-focused mid-market technology investment arm of CVC.

In 2016, Partech Ventures invested EUR 30m in EcoVadis and in February 2020 the business received funding from Bain & Company for an undisclosed amount.

Company
EcoVadis was founded in 2007 by Pierre-François Thaler and Frédéric Trinel and is headquartered in Paris, with 15 offices worldwide including in Europe, Asia, Australia and the US. It is a provider of business sustainability ratings and scorecards to companies of all sizes across 200 industry categories in 175 countries including private equity firms and advising on ESG-related loans. Clients include companies such as Amazon, JPMorgan, Johnson & Johnson, L'Oréal and Unilever. In total, the business serves 95,000 business supporting them to improve sustainability performance.

Over the course of the last 12 months, EcoVadis' revenue grew 50% and its global workforce reached 1,300 employees, according to a press release.

People
EcoVadis – Frédéric Trinel (co-founder and co-CEO).
BeyondNetZero – Rhea Hamilton (managing director).
Astorg – Benoit Ficheur (partner).

Advisers
Vendors – GP Bullhound (corporate finance).
Equity, Astorg – Goodwin (legal), Clipperton (M&A).

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