For many in the start-up scene, it should come as a surprise what the founders Anna Alex, 36, and Benedikt Franke, 38, are now announcing: They are selling Planetly to the American software provider One Trust, the solutions for dealing with data protection, IT security, ethics and sustainability. The companies do not comment on the conditions.
Business should have got off to a good start. The Berlin start-up Planetly, officially active since 2020, has already won well-known companies such as BMW and Hello Fresh as customers with a platform for measuring CO2 emissions and has received EUR 7.8 million in venture capital for the development of the technology.
Planetly founder Alex wants to see the sale as the next logical step. The merger makes it possible to advance the “mission of a climate-neutral economy” even faster, she told the Handelsblatt. “I see huge potential to expand our product range and sell it to a lot more customers.” And that is important because speed is of the essence in view of the rapid climate change.
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The potential is indeed great. Organizations are under increasing pressure to measure the emissions of substances that are harmful to the climate. For example, the EU Commission will oblige companies with sales of more than 40 million euros and 250 employees to publish information on sustainability from 2023 on, in a digital format. Regulation is also increasing elsewhere.
Collecting CO2 emissions is complicated
The survey has so far been arduous: According to a survey by the Boston Consulting Group, only nine percent of international companies are able to fully and comprehensively quantify the value. In addition, the error rate is considered high. The most common data collection tool is still an Excel spreadsheet.
Anna Alex knew the difficulties firsthand. At her former company Outfittery, the co-founder took on the task of measuring the online fashion retailer’s carbon footprint – she had to collect the data with the help of a management consultant. In the end, she just had a PDF file in front of her.
When the entrepreneur was looking for a new challenge later, she and Benedikt Franke developed the idea of developing software for emission measurement herself. The former boss of the portal Helpling was also looking for a new project, so they got together. The two know and appreciate each other from the early days of Rocket Internet.
There is a gap in the market for start-ups like Planetly. “CO2 management has never been so easy,” promises the company. It has developed a platform on which companies can systematically record emissions. There are integrations for many IT systems that make importing the data much easier. Around 50 developers are working on it.
However, the market is fragmented. In Germany alone, the consulting firm Atlantic Ventures has 70 providers. In addition to classic environmental issues, providers of sustainability software are increasingly also covering climate aspects. IT companies like SAP and Salesforce see an opportunity to expand their systems.
“We can scale the business globally overnight”
There are also a number of start-ups with great ambitions, including in Germany. Plan A from founder Lubomila Jordanova recently raised ten million US dollars (the equivalent of 8.9 million euros) from the German investment company HV Capital and the Dutch Keen Venture Partners, among others.
Planetly is now participating in the consolidation of the market, which should start in a few years at the latest. However, from “a position of strength”, as founder Alex emphasizes: “We had several financing offers on the table. But we made a conscious decision to partner with One Trust. ”In this way, one can achieve a greater“ impact ”, ie a greater effect in the fight against climate change.
From the point of view of the founding team, the merger with One Trust has several advantages. On the one hand, there are sales opportunities: the US company says it has around 10,000 customers and operates offices on all continents. The provider is particularly present in the USA, the largest software market in the world – half of the Fortune 500 members are customers. “We can scale the business globally overnight,” says Planetly founder Alex.
In industry circles you can hear that Planetly has successfully won new customers in Germany. But beyond that – the company is still young. Expanding international sales together with One Trust should now be a lot easier. In particular, Planetly could benefit from existing customers.
Reporting requirements will continue to increase
On the other hand, the Berlin start-up hopes to accelerate development thanks to the parent company’s resources: One Trust employs 600 developers and has received $ 920 million in venture capital since it was founded five years ago. “Our customers will feel this through new functions and more industry-specific solutions.” Management will be thinking about specific plans in the coming weeks.
For Planetly boss Franke, however, the logic of the market also speaks in favor of the merger. It is foreseeable that the reporting requirements will continue to increase in the coming years, for ecology as well as for social issues and good corporate governance. “Companies that can manage these issues holistically will have a competitive advantage,” says the manager.
With Planetly, One Trust will in future also be able to offer the measurement of CO2 emissions – an important criterion for compliance with ecological, social or ethical standards, in technical jargon ESG. “Put simply, we are the E in ESG,” says Franke.
The sale of Planetly may come as a surprise to the public, but it is understandable from an investor’s point of view. The timing is early, but the step is not unusual. “You either sell fantasy and excitement,” says HV Capital investor Jan Miczaika. Later it is about numbers: “In between it often looks poor.” And Planetly knows how to arouse enthusiasm.
More: “Strategic competitive advantage”: software for climate protection is becoming a billion-dollar market