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Deepki Raises €150M To Tap The Massive ESGTech Opportunity In Real Estate

On March 30th 2022, real estate ESG data intelligence platform provider Deepki announced it had raised €150 million ($165 million) in a Series C funding round. The vendor plans to use the funding to elevate its position in the European market for ESG reporting software and expand its operations in the US. Deepki will use the funding to hire 200 staff through 2022 and make strategic acquisitions in the growing ESG monitoring and analytics market, which it predicts will reach $10 billion by 2025. The Series C round was led by One Peak and Highland Europe, following its €8 million Series B funding round in 2019.

Deepki’s sizable funding injection reflects that the market for ESG data management is on a massive growth trajectory. Real estate executives need to respond to the growing range of ESG disclosure regulations on the horizon and the rising prominence of voluntary frameworks such as Carbon Risk Real Estate Monitor (CRREM), GRESB and TCFD. Just the other week, the US Securities and Exchange Commission provided further details on its comprehensive mandatory ESG disclosure framework. These pressures are already dragging real estate ESG data management strategies into the digital era. According to our survey of 50 North American landlords, 50% plan to increase spending on ESG software through 2022.

Additionally, with the real estate industry contributing 40% of global emissions, there is mounting pressure on building managers to decarbonize operations. As firms invest in net-zero projects, they must leave behind manual data management methods to collect and analyse equipment-level data. This granularity of data is key to helping firms identify underperforming systems and track the effectiveness of existing energy efficiency schemes.

Following the success achieved by Deepki, we expect a growing range of proptech vendors will launch similar ESG data management propositions. The most successful vendors will have the agility and resources to keep on top of the rapidly developing ESG reporting landscape, delivering regular software updates that stay on top of changing reporting requirements.

For an overview of changing real estate ESG reporting requirements in the next three years, read our report Strategic Focus: Responding To ESG Disclosure Requirements In Real Estate.

SB Deepki Raises 150M To Tap The Massive ESGTech Opportunity In Real Estate

Ben Readman

Analyst, Verdantix
Verdantix

Ben is an Analyst in the Verdantix Smart Buildings practice. His research agenda currently focuses on new strategies for corporate energy management and future trends in carbon offsetting markets. Ben Joined Verdantix in 2021 having previously worked as a researcher at CECAN. He holds a Masters in Environmental Strategy from the University of Surrey and a BA in Geography from the University of Birmingham.