In a world where sustainability is no longer a buzzword but a boardroom mandate, Montreal-based Novisto is stepping up. On May 20, 2025, the company announced a $27 million Series C funding round, led by Inovia Capital and backed by existing investors White Star Capital, SCOR Ventures, and Sagard. This cash injection, bringing Novisto’s total funding to over $55 million, will fuel its expansion across Europe and supercharge its environmental, social, and governance (ESG) reporting platform. With revenue nearly tripling since its 2023 Series B, Novisto is riding a wave of demand for tools that make sense of complex sustainability regulations, especially in Europe. So, what’s driving this growth, and why is Novisto becoming the go-to for global giants?

A Platform Built for a Regulatory Storm

Founded in 2019 by Charles Assaf, Edouard Clement, and Marian Borca, Novisto offers a software-as-a-service platform that feels like an accounting system for sustainability. It helps companies collect, validate, and report ESG data, ensuring compliance with fast-evolving rules like the EU’s Corporate Sustainability Reporting Directive (CSRD) and Taxonomy. Think of it as a digital lifeline for firms drowning in spreadsheets and regulatory jargon. Clients like Sanofi, which used Novisto to produce one of the first 15 CSRD-compliant reports in 2024, praise its ability to streamline data governance.

“Our partnership with Novisto has accelerated our journey toward CSRD-aligned disclosures and set new standards for data quality,” said Laurent Lhopitalier, Sanofi’s Head of ESG.

The Emirates Group, Bombardier, Meta, and Moderna are also on board, alongside partners like S&P Global, showing Novisto’s reach across tech, healthcare, aviation, and more.

The platform’s appeal lies in its efficiency. Clients report a 50% drop in time spent on ESG assessments, plus sharper data that boosts stakeholder trust. With 70 clients and 130 employees across North America and Europe, Novisto has grown fast since its $20 million Series B in 2023. CEO Charles Assaf sees a clear driver: “Forward-thinking leaders aren’t waiting for policy clarity—they’re acting now. The market demands transparent, decision-grade sustainability data.”

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Why Europe, and Why Now?

Europe is ground zero for ESG regulation. The CSRD, fully effective in 2025, requires 50,000 EU companies to report detailed sustainability metrics, a leap from the 11,000 under prior rules, per the European Commission. The EU’s Omnibus proposals, introduced in February 2025, aim to simplify compliance but keep the heat on big firms to disclose their environmental and social impacts. Novisto’s Series C will bankroll a European team to match its North American one, doubling its regional footprint.

“They need systems like ours,” Assaf told BetaKit, eyeing Europe’s regulatory push as a “huge market opportunity.”

The timing is spot-on. A 2024 PwC survey found 60% of European firms feel unprepared for CSRD, and Novisto’s AI-driven analytics and audit-ready reports are filling the gap. Its partnership with S&P Global, for instance, extends its tools to a wider network, while Sanofi’s early CSRD success shows it can handle complex mandates.

But it’s not just Europe. North America faces its own ESG pressures, with Canada’s securities regulators drafting mandatory disclosures and the U.S. SEC pushing climate rules, though political pushback under Trump’s 2025 policies has muted U.S. demand, per Assaf. Still, Novisto’s pipeline is growing, and 83% of global investors prioritize ESG, per a 2024 BCG report, keeping the pressure on firms to act.

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The Challenges Ahead

Novisto’s not without hurdles. ESG backlash, especially in the U.S., has made some firms quieter about sustainability, even if they’re still investing. A 2024 survey of Canadian investors noted they’re committed to ESG but less vocal amid political heat, per BetaKit. Competition is another factor—rivals like Workiva, Sphera, and Salesforce offer ESG tools, though Novisto’s focus on audit-grade data and CSRD expertise gives it an edge. Scaling in Europe means hiring fast and integrating AI without losing quality, a tall order for a 120-person team aiming for 200. Profitability, a goal for this round, will test its efficiency as costs rise.

What’s Next for Novisto?

The $27 million—$25 million primary, $2 million secondary—will flow into platform upgrades, like generative AI and advanced analytics, to keep pace with new ESG standards. Novisto’s European expansion targets financial services, tech, and healthcare, building on clients like Deutsche Bank and Synopsys. Its three-to-five-year plan, per Tech Funding News, includes doubling down on global growth and becoming the “ERP for ESG,” a system of record for sustainability.

Inovia’s Mia Morisset, joining Novisto’s board, called it “uniquely positioned for success,” citing its blue-chip client list and regulatory savvy.

With the global ESG software market projected to hit $2.7 billion by 2030, per McKinsey, Novisto’s momentum is timely. For now, Novisto’s bet on Europe’s regulatory wave and its knack for turning ESG chaos into clarity make it a standout.

As Assaf puts it, “We see a huge global opportunity, led by leaders committed to resilient, sustainable businesses.”

If they keep delivering, Novisto could redefine how companies prove they’re walking the green talk.

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