AI-powered ESG risk management platform Greenfi raises $2 million from Transition VC

Kerala-based AI-powered ESG risk management st Greenfi has raised its first funding round of $2 million led by Transition VC to accelerate its global expansion and product development. 

The startup's AI-powered platform helps enterprises automate environmental, social, and governance (ESG) risk management, replacing the need for large consulting teams and manual assessments.

Founded in 2023 by Barun Chandran, Greenfi’s technology analyses ESG data in real time and offers role-based recommendations to help organisations improve sustainability performance and address compliance risks.

The startup’s clients span Singapore, Japan, and the UK across industries such as fashion and apparel, food and agriculture, retail, banking and financial services, and manufacturing. Greenfi currently operates with a lean team of 16 people, down from 26 after deploying AI systems that now manage more than 60 percent of its operations. It retained its core ESG specialists and developers for oversight while trimming engineering and research functions. It plans to strengthen its sales, marketing, and branding teams as part of its global growth strategy.

“As ESG risks increasingly influence underwriting and financial performance, Greenfi stands out for building an end-to-end, AI-driven platform that helps financial institutions monitor, assess, and underwrite their customers more intelligently,” said Mohammed Shoeb Ali, managing partner and cofounder of Transition VC.