Carbon management startup Avarni has raised $3 million in venture funding, less than 12 months after launching.
It’s the startup’s second raise – and part of a recently emerged trend to decline to identify a round – since it was founded in 2021.
CSIRO VC fund Main Sequence Ventures led the raise with support from existing backers Vulpes Ventures and Common Sense Ventures.
Avarni uses artificial intelligence (AI) for rapid measurement and planning to help companies analyse address their emissions exposure and counts KPMG among its clients. The business has already analysed more than $100 billion in corporate spending data and 150 million tonnes of CO2e in supply chains to help business address issues such as the US Government’s proposed Federal Supplier Climate Risks and Resilience Rule, which requires major government contractors report their Scope 1, 2 and 3 emissions.
Scope 1 covers direct greenhouse emissions from sources controlled or owned by an organisation. Scope 2 emissions are indirect ones from things such as the purchase of electricity, steam, heat, or cooling for energy use.
Scope 3 emissions comes from suppliers and supply chains, so Scope 3 emissions reporting means organisations supplying goods or services to a major contractor will need to provide emissions data of their own.
Avarni aggregates raw supply-chain and spending data, to help customers understand their Scope 3 emissions and enable supplier engagement on carbon reduction strategies.
The company was cofounded by former KPMG Australia management consultant Tony Yammine, ex Atlassian product manager Misha Cajic and Anuj Paudel.
“Since our launch roughly a year ago, we have made huge strides in Australia and globally to help companies continue to progress their decarbonisation journey, and use our AI-backed platform to allow businesses to access their Scope 3 emissions quickly, effectively and without the burden of significant cost,” Yammine said.
Vulpes Ventures managing partner Field Pickering said they were impressed by what Avarni has achieved over the last year.
“They are on a strong trajectory despite a challenging economic environment. The team is rapidly building one of the biggest data sets available on corporate emissions,” he said.
“This is the intelligence businesses need to inform their decarbonisation strategies – and Avarni is at the forefront of rapidly collecting this information.”