ESG credentials startup Klean has raised $725,000 in a pre-Seed round led by Prtnr Ventures, the new VC founded by Wayne Gerard, a former Queensland chief entrepreneur.
Klean was founded in late 2022 by Shan Vahora to address the concerns of the 70% of Millennial and Gen Z consumers who say they care about the ESG credentials of the brands they buy, so he set out to transform ESG in retail to create a selling point.
“Research – and our own data – has shown that engaged consumers are willing to spend more on sustainable products and have a higher lifetime value as they are more loyal and repeat customers,” Vahora said.
“Brands also want to connect to those consumers in a more authentic, personalised and seamless way.”
Klean helps brands attract new customers by measuring and showcasing their ESG credentials across social impact, carbon, water and chemicals. It also collects data from those eCommerce transactions and uses AI to help retailers increase customer retention and lifetime value with retargeting via social media ads and EDMs.
Vahora is a strategy and sustainability consultant to Fortune 500 firms and startups spanning energy, mining, e-commerce, retail and infrastructure. He previously helped scale data & analytics startup Intelie in the USA to a A$45 million exit to Viasat.
“Our first two Klean products measuring and showcasing ESG credentials along with a backend analytics dashboard is built and live on 15 customers including brands such as Wild Earth, OCAM, Hommey and Arms of Eve,” he said.
“Our AI based retention product is currently being built and will be live with beta customers next month.”
On top of the pre-See round, Klean also scored a $200,000 IGNITE grant from the Queensland government, which Vahora says will give them 18 months of runway to December 2025.
“The funds raised will fuel our growth, product development and marketing activities including development of our AI based analytics and consumer engagement tools that will provide enterprise level capabilities to retailers of all sizes,” he said.
“This is a significant milestone and a testament to the company’s innovative approach, strong market potential, and the unwavering support of our customers. As we embark on the next chapter, we remain focused on our mission to revolutionise the retail industry and make a positive impact on the ESG.“
Strong traction in eCommerce
Prtnr is an early-stage fund investing in climate and health tech companies with a sustainable focus.
Founder Wayne Gerard said that while many investors are shying away from eCommerce and D2C (direct-to-consumer, they were impressed by Klean’s significant early traction in solving a genuinely important and topical problem in a low friction way.
“Climate and ESG impact are areas every retail company has to demonstrate to their customers and investors. Retailers have to invest in solutions and tell their Climate and ESG story simply as part of the instore and eCommerce buying experience now,” he said.
“We believe there’s a huge addressable market for the right solutions in this space and Klean not only delivers a climate and ESG solution, but the data also demonstrates significant increases in Average Order Value (up to 33%), Conversion Rates (circa 15%), Repeat Purchases (still be captured) and ROI (from 5-10x) and their only just getting started.
“They have a really valuable data platform about to launch which will drive even more value for retailers and consumers and importantly for the planet and from an ESG perspective.”
Gerard has joined Klean’s board as chair, with Christine Hayward also signing on as a director.
Shan Vahora said that Klean is focused on sales, with one eye on global expansion.
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