Climatetech startup Fitsol raises $1 million in a seed round from Transition VC

Climate tech startup Fitsol has secured $1 million in a seed funding round from Transition VC to scale its AI-powered decarbonization platform for the manufacturing industry.

Founded in 2022 by Anand Pathak, Akshay Tandon, Manoj Sharma, Sunil Bansal, and Vikas Kalra, the startup helps manufacturers measure, report, and actively reduce carbon emissions, particularly focusing on the hard-to-mitigate Scope 3 category.

AI-Driven platform and sustainability marketplace

Fitsol’s flagship platform, Kyoto, tracks emissions across Scope 1, 2, and 3, offering advanced analytics and real-time reporting.

Alongside Kyoto, Fitsol operates a sustainability marketplace that streamlines green logistics, sustainable packaging, eco-friendly procurement, waste management, and carbon offsetting. This end-to-end approach positions Fitsol as a single-stop solution for companies striving to meet net-zero targets while maintaining cost efficiency.

“As a bootstrapped company for over 2 years, Fitsol has become a trusted decarbonisation partner for the manufacturing industry, committed to creating lasting impact. Our vision goes beyond measuring and reporting carbon emissions to actively reducing Scope 3 emissions, which account for 70-90% of a company’s carbon footprint. By collaborating with manufacturers, we implement practical solutions across transportation, packaging, warehousing, waste management, and other critical areas. This enables businesses to make significant strides in their sustainability efforts while leveraging sustainability as a competitive advantage. Our solutions have proven that decarbonisation and cost efficiency can go hand in hand, making sustainability not just an environmental obligation but a smart business strategy," said Anand Pathak, Founder and CEO of Fitsol.

Purpose of fundraising

Fitsol plans to use the raised capital towards upgrading Kyoto’s artificial intelligence capabilities, including new modules for lifecycle assessments and product carbon footprints.

The startup plans to hire top talent in technology, business development, and customer success, aiming to better serve its expanding client base.

Fitsol will build a first-of-its-kind sustainability solutions marketplace for the B2B segment, giving manufacturers easy access to vetted eco-friendly services.

The startup also intends to expand geographically, with India as its core market and Middle Eastern operations set to launch in the near future.

It aims to manage 500 million tonnes of carbon emissions in supply chains over the next two years.

Investors comment

“Fitsol is building a carbon platform for the future that provides customers with solutions for carbon footprint management including carbon reporting, monitoring, auditing, reduction, and offset of carbon emissions. The platform helps corporates and MSMEs identify carbon heat maps, benchmark emissions against their peers, and eventually reduce their footprint. While many platforms exist, Fitsol stands out by focusing on Scope 3 emissions, which account for over 70% of carbon emissions in most industries. Their cost-effective solutions for reducing carbon footprints in logistics, supply chain, and packaging make them a game-changer in the industry," said Quote from Shoeb Ali, Co-founder & Managing Partner, Transition VC.

“Indian industries are committed to achieving net-zero, but the journey is often hindered by cost constraints. Fitsol bridges this gap by enabling businesses to reduce costs while cutting their carbon footprint, driving India closer to its climate goals," said Raiyaan Shingati, Co-founder & Managing Partner, Transition VC.