Sourceful, a startup that has created a platform to help businesses reduce their carbon footprints in packaging and supply chains, has raised $20m (£15.2m) in funding.
The Manchester-based company will use the fresh capital for international expansion, doubling the headcount of its 65 employees, and developing four new product categories – including the integration of lifecycle assessments for plastics.
Index Ventures led the Series A round, with additional investment coming from Coatue and Eka Ventures.
Sourceful uses data to help businesses source and manage sustainable products. Businesses can use the “data-driven” platform to design custom sustainable packaging and offset their carbon footprint.
When designing, businesses can see the carbon footprint and price implications of proposed changes.
“Pressure is mounting on businesses to reduce their emissions, due to the environmental urgency, increasing consumer demand, and the growing regulatory burdens around climate disclosure,” said Wing Chan, CEO and co-founder, Sourceful.
Consumer industries account for 35% of global emissions, with approximately 83% of those emissions coming from the supply chain. Ecommerce packaging continues to have an impact on the environment as online sales are increasing 15% each year.
“We often hear about the ‘green premium’ making emission reductions unaffordable at scale, but we’ve seen the inverse with packaging. Presented with better choices, reducing footprint can also reduce cost,” added Chan.
Sourceful previously raised £8.8m in September 2021 bringing the total funding to date to £23.8m.
“Supply chains represent one of the world’s biggest sustainability roadblocks, but they also contain one of our biggest opportunities to reduce global emissions,” said Danny Rimer, partner at Index Ventures. “Sourceful is spearheading the effort to reduce the carbon footprint of supply chains, with the expertise, data and AI to give businesses the choices and the transparency they never had.”
The global supply chain technology market today is $25bn and is expected to grow to $100bn by 2030.
In 2021 UK impact tech startups raised $2bn, up from £1.7bn in 2020.