In a move set to transform how companies manage and report their sustainability performance, Tracera has raised $12 million in a Series A funding round. The capital will be used to expand its AI-powered ESG data platform, helping businesses meet rising regulatory demands and turn sustainability compliance into strategic advantage.

Founded in 2022 and formerly known as ESG Flo, New York-based Tracera specializes in automating ESG data collection, verification, and auditing. Its platform helps businesses navigate the complexities of sustainability disclosures by sourcing traceable, verifiable data from across their operations and supply chains. The goal: make ESG reporting smarter, faster, and more cost-effective.

The funding round was led by Foundry, with participation from Rho Ignition, Tola Capital, and Contour Venture Partners. As part of the investment, Foundry Partner Seth Levine will join Tracera’s board, collaborating with several other industry leaders to guide the company’s next phase of growth.

CEO Patrick Obeid emphasized the growing role of ESG data in driving business success. “At Tracera, we’re revolutionizing the way businesses see growth—proving that sustainable growth and financial success are one and the same,” he said. “The untapped power of sustainability data has the potential to transform businesses, uncover inefficiencies, drive competitive edge, and position you to lead in an increasingly fierce market.”

READ MORE: Persefoni Secures $23 Million to Expand AI-Driven Carbon Accounting Solutions.

The investment comes shortly after Tracera unveiled a new Scope 3 emissions data tool. This tool leverages AI to automatically collect and analyze supplier-specific emissions data—helping companies gain greater visibility into their full environmental footprint and identify key areas for reduction.

The need for such innovation is growing fast. As regulators tighten rules and stakeholders demand clearer sustainability disclosures, businesses are under pressure to back their ESG claims with hard evidence.

Seth Levine commented, “With regulatory pressures mounting and scrutiny of sustainability claims intensifying, the demand for accurate, traceable data is surging. Tracera’s comprehensive, AI-driven solution is perfectly suited to meet these challenges, turning sustainability reporting into a strategic advantage rather than a compliance headache.”

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