Arabesque S-Ray apparently attracts $40 to $50 million in funding

This would not be the first million-dollar investment the start-up has received. It is dedicated to the topic of ESG.

The data division of Frankfurt-based startup Arabesque S-Ray could receive, according to the Süddeutsche Zeitung 40 to 50 million U.S. dollars. A consortium around the venture capital fund Energy Impact Partners, based in New York, London and Cologne, is said to be ready to provide the money. The investors want to acquire probably 20 to 24.99 per cent of the company for it. S-Ray would then be worth up to 250 million dollars. Key data papers are said to already be in place, but Arabesque and Energy Impact Partners did not announce this yet.

S-Ray has already landed many millions of euros: Hesse's Ministry of Economics invested two million euros in taxpayer money, while 18 million euros came from Allianz, Deutsche Bank subsidiary DWS, Commerzbank and Landesbank Hessen-Thüringen (Helaba), and consulting firm Accenture. DWS had even invested a second time, spending eight million euros on an Arabesque subsidiary that aims to bring together sustainable investing with AI.

However, Arabeque, which was founded in 2013 and is headquartered in London, nearly doubled its loss in 2020 to £11.4 million, according to SZ. Revenue from customer contracts is said to have increased by only 38 percent to 3.4 million pounds. The company now plans to report profits for 2021.

Why is the company so popular with investors anyway? It is dedicated to ESG. That stands for environment (Environment), social (Social) and good corporate governance (Governance). The issue of sustainability is also increasingly important in investments: banks and investors also want to invest money in an environmentally friendly way. Arabesque wants to bring ESG and high revenues together in the long term.