Berlin-based carbon accounting startup Plan A has been acquired by Diginex, a London-based sustainability regulation tech provider. The deal values Plan A at €55m.

Plan A was founded in 2017 and provides software to help companies to calculate their environmental impact. The startup raised $40m in total from backers including Lightspeed, HV Capital, Deutsche Bank and Opera Tech Ventures, the VC arm of BNP Paribas. The founders of Supercell, Aiven, Zalando and Wolt also put money into the company.

Diginex, which is listed on NASDAQ, will pay the shareholders of Plan A €3m in cash, plus shares in Diginex worth €52m, in exchange for 100% ownership of the startup.

Plan A’s founder, Lubomila Jordanova, will continue as CEO of the company as it becomes part of Diginex. “My priority was ensuring the Plan A legacy, our brand, our product would expand and evolve for our clients,” Jordanova wrote on LinkedIn.

Diginex, which was founded in 2017, provides ESG and sustainability reporting tools. In May last year, it acquired Danish carbon accounting startup Matter.

The carbon accounting boom

Plan A was part of a cohort of carbon accounting companies which received significant investor interest in 2021 and 2022. The sector brought in $860m in 2022, according to analysis by data provider Net Zero Insights.

Investor interest in the sector has dipped in recent years, however, as policy makers have rolled back the requirements they place on companies to report ESG metrics. The European Union, for example, has increased the size companies need to be before they file ESG metrics under its CSRD policy.

Commentators have long predicted consolidation for the crowded carbon accounting sector. Earlier deals include Accenture’s acquisition of London-based carbon accounting firm Carbon Intelligence, and US compliance firm OneTrust’s acquisition of Berlin-based Planetly.

The best-funded carbon accounting startup in Europe is Paris-based Sweep, which has raised $100m from investors including Balderton and La Famiglia.