Dcycle acquires Munich-based ESG start-up ESG-X

The Spanish platform for ESG and sustainability data management, Dcycle, is acquiring 100% of the Munich-based software start-up ESG-X. With the acquisition, Dcycle is strengthening its product portfolio specifically for larger medium-sized companies and family businesses that are increasingly under regulatory pressure, e.g. due to CSRD supply chain requirements and growing demands from customer ratings. At the same time, many companies do not have the personnel or budget resources for complex enterprise software.

Integrated ESG platform for SMEs

The merger creates a combined platform that is specifically tailored to the needs of SMEs. Dcycle provides a scalable infrastructure for non-financial company data, while ESG-X complements this with AI-supported applications for ESG processes.

The new solution covers the entire ESG process, from automated materiality analyses and CSRD-compliant reports to the evaluation of existing company data, and minimizes manual effort.

The European ESG software market is in a consolidation phase. Many solutions only cover partial aspects. With ESG-X, we are gaining access to one of the most important European markets, technical expertise and AI competence for SMEs.

Juanjo Mestre, CEO and co-founder of Dcycle

Germany as a key market

Germany is considered one of the most demanding ESG markets in Europe, especially for industrial SMEs. The ESG-X founders are joining Dcycle to further support the expansion of the German business.

We have developed ESG-X for medium-sized companies that need to fulfill ESG requirements without having to set up their own departments or complex software. With the acquisition, we can now scale this model faster and in new markets.

Valentin Aman, Co-Founder and CEO of ESG-X

The acquisition is part of Dcycle's growth strategy, which focuses on organic expansion and targeted acquisitions following the Series A financing at the end of 2024. The aim is to build a leading ESG platform for European SMEs.