“Hours, not months”: Karomia raises €2 million for its CSRD and ESG AI platform

Ghent-based software company Karomia has secured €2 million in funding, to expand its AI-powered Environmental Social and Governance (ESG) reporting platform with a focus on producing a Corporate Sustainability Reporting Directive (CSRD)-compliant reports.

The funding round was led by Entourage, imec.istart Future Fund & imec.istart Fund.

Jens Verhiest, COO of Karomia, explains: “ESG reporting doesn’t have to be complex in the age of AI. Our customers focus on what matters: prioritizing and executing their sustainability initiatives, while Karomia’s knowledge machine eliminates the bureaucracy of report writing.”

Founded in 2024 by Jens Verhiest, Luc Machiels, and Simon Hiel, Karomia has helped 45+ companies in Europe and the US comply with the Corporate Sustainability Reporting Directive (CSRD). The company’s AI-driven solution tackles two key challenges: managing vast data requirements and assessing sustainability impacts across the entire value chain.

As the CSRD becomes essential for businesses, Karomia wants to shift the focus from compliance to sustainable impact. The platform reporetedly reduces reporting time by 90%, ensuring companies stay compliant without the usual complexity.

While other ESG reporting solutions can take months to produce a CSRD-compliant report, Karomia promises to deliver a near-final version in hours.

The company says that CSRD compliance can seem complex and time-consuming, especially as regulations constantly evolve. Karomia automates the entire process, using AI to analyse a company’s data, fill the ESG report and flag missing information.

“Our clients are often surprised to discover they already have much more CSRD information than they initially thought – it just needs to be extracted and organized,”  says Simon Hiel, CTO of Karomia.

According to Karomia, every piece of information is “100% traceable to its source, ensuring accuracy and transparency.” That way, businesses know what’s in the report and where it’s coming from.

The platform is used by over 45 customers, from large enterprises to SMEs, across various industries.

Regulatory updates are tackled in near-real time, ensuring companies are equipped tonavigate the volatile regulatory landscape. By reducing reporting time, the platform allows companies to focus on real sustainability initiatives.

Luc Machiels, CEO of Karomia, explains: “It’s a fact of business: companies that prioritize sustainable practices and stay transparent are more competitive. Karomia delivers the technology that creates that transparency – without the bureaucracy.”

“Seeing the uncertainty surrounding the Omnibus proposal, I believe technology will be crucial in dealing with the volatility of requirements while keeping the administrative burden to a minimum. It is the pragmatism we need going forward!” explains Jochen Vincke, partner at PwC consulting, who uses the Karomia platform for his clients.

The investment will enable Karomia to further refine its platform, making CSRD compliance more accessible for companies of all sizes. This includes the much smaller SMEs which are following the VSME standard. Beyond streamlining reporting, Karomia plans to expand its solutions to help businesses develop robust sustainability strategies.

“Leveraging a strong team and rapid growth, we are confident that this investment will position the company uniquely in the market, driving future success,” says Ruth Janssens, Partner at imec.istart Future Fund.

Pieterjan Bouten, CEO of Entourage, highlights: “Most companies drown in ESG paperwork before they even get to any sustainable impact. Karomia hands them a life raft. Their tech is a tremendous relief for sustainability teams and CFOs tasked with the challenge of ESG reporting.”

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