Doconomy, a carbon tracking application supported by Mastercard, has successfully raised $17 million in a funding round spearheaded by CommerzVentures. This milestone is recognized as the largest climate fintech investment round in Europe, bringing the total funding for Doconomy since early 2018 to $24 million. Notably, existing investors such as Mastercard, Wiklöf Holding, and Ålandsbanken also participated by increasing their stakes during this round.
The platform currently manages nearly 90 million transaction impact assessments each month across 20 markets. Key clients include Klarna, serving almost 20 million users through its app, and Nordea, which has over two million users utilizing its digital wallet. In June, Doconomy secured a significant partnership with Standard Chartered and provides the foundational technology for a carbon calculator integrated into bank applications developed by Mastercard.
Doconomy’s app leverages the Åland Index, established in 2016, to deliver carbon footprint calculations for every financial transaction. Recently, the app has expanded to include freshwater impact assessments. The index measures the carbon and water footprints of purchases, representing them in kilograms of carbon dioxide equivalents and litres of water used, respectively.
With the new funding, Doconomy plans to expand its workforce and make its services available in an additional 10 markets in 2021. The company also aims to enhance its impact calculations related to lifestyle, products, and corporate activities.
Paul Morgenthaler, partner at CommerzVentures, expressed enthusiasm about the investment, stating, “We believe in the capacity of FinTech to drive climate action. Doconomy distinguishes itself as a global leader in measuring transaction impacts, and we are eager to collaborate in empowering banks and payment companies to educate their customers about taking climate action.”