London/Paris-based Deepki, a company offering a fully populated ESG data intelligence platform for the real estate sector, announced on Wednesday that it has raised €150M in its Series C round of funding.
According to the company, more than $5T investment is needed each year to decarbonise the built environment and ensure that the real estate sector can meet its commitment to meet the net zero target by 2050. Deepki estimates that the value of the monitoring and analytics market required to achieve this goal will be worth $5B to $10B by 2025, with year-on-year growth of 20 per cent.
The round was co-led by One Peak and Highland Europe, two London-based Growth Equity firms specialising in category-leading, growth-stage technology companies in Europe.
Jean Tardy-Joubert, Partner at Highland Europe, says, “What gets measured, gets managed and this is key to reducing emissions from the real estate sector, which currently is responsible for 40 per cent of the Earth’s carbon emissions. Deepki provides a way for building owners, managers and tenants to measure and therefore neutralise the carbon impact of their assets. For one of the world’s oldest and most important industries, Deepki is providing an important first step on the journey to achieving real estate’s Net Zero goals.”
Other investors, including Bpifrance, through their Large Venture fund, and Revaia, as well as existing investors Hi Inov and Statkraft Ventures, also supported Deepki in this round.
Funds for expansion and 200 new hires
Deepki says the proceeds from this round will help consolidate its leadership position in Europe through innovation, secure over 200 new hires in 2022, establish and grow the business in the US within the next 12 months, and carry out strategic acquisitions.
The company reports that it has witnessed 100 per cent year-on-year growth since 2019 and is confident that this trend will continue into 2022, as it seeks to benefit from the real estate sector’s increasing focus on improving ESG performance and combating climate change.
Vincent Bryant, CEO and co-founder of Deepki, says, “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, and we are pleased to have our new partners Highland Europe and One Peak, as well as Revaia and Bpifrance Large Venture on this journey.”
Supporting real-estate players in their transition to net zero and sustainability
In 2014, Vincent Bryant and Emmanuel Blanchet understood that with the right data-empowered ESG strategies, real estate could be a force for good on the planet. Today, leading global companies and government organisations have joined forces with Deepki to deliver positive impact at scale.
The company’s SaaS platform helps real estate investors, owners and managers improve the Environmental, Social and Governance (ESG) performance of their real estate assets, and enhance their value in the process. The real estate sector is currently responsible for around 40 per cent of the Earth’s carbon emissions, and has a clear target of reaching net zero by 2050 – a goal set by the World Green Building Council Net Zero Carbon Buildings Commitment.
The platform helps 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 says, “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.”
With over 150 employees, offices in five European capital cities and operating in over 38 countries, Deepki says it has become the global leader in ESG and data intelligence solutions for environmental transition in the commercial real estate sector, with more than 500 million sqm – almost five times the area of Paris – under management. To date, the company has saved over 180,000 equivalent tonnes of CO2 across its client base.
In 2021, Deepki secured new business from major European players such as AEW and Tikehau in France, Generali RE and DeA Capital in Italy, Allianz Real Estate and Warburg HIH in Germany, Azora Capital and Neinver in Spain, and several leading global property and asset managers in the UK.