Supply Chain Sustainability Software Startup IntegrityNext Raises $109 Million
March 30, 2023 by Joe Panettieri
IntegrityNext, a sustainability software provider that enables supply chain transparency and regulatory compliance, has received a EUR 100 million (US$108.9 million) investment from the EQT Growth fund -- which is part of private equity and venture capital firm EQT Group.
IntegrityNext, founded in 2016, is headquartered in Munich, Germany. The software company had 56 employees listed on LinkedIn as of March 2023. As of that time, IntegrityNext supported roughly 200 customers -- who use the software to monitor almost one million suppliers, the company said.
Key customers include Siemens Gamesa, Infineon, SwissRe, Kion and Hilti, IntegrityNext indicated. Key software integrations include Celonis, Coupa and SAP.
IntegrityNext believes several European regulations and frameworks -- such as the German Supply Chain Due Diligence Act (LkSG), the EU's Green Deal and the Corporate Sustainability Reporting Directive (CSRD) -- will fuel longterm demand for its software.
IntegrityNext Partner Program: IntegrityNext offers open APIs to simplify integration with third-party procurement and ERP (enterprise resource planning) software platforms. Integrations and partners as of March 2023 included Aneon, APsolut, Celonis, ClimatePartner, Coupa, Ivalua, SAP and SAP Ariba, and Sphera.
In a prepared statement about the funding, Berr-Sorokin said: "The critical importance of ESG is not a new concept to modern businesses. However, as a raft of regulatory frameworks – like Germany's LkSG or the EU's CSRD – begin to take effect, supply chain transparency and sustainability is evolving from a nice-to-have to a must-have. As more clients entrust us and we embark on our next stage of growth, we're excited to be partnering with an experienced and hands-on investor with European roots and global scale like EQT Growth."
Added Dominik Stein, partner in the EQT Growth Investment advisory team: "IntegrityNext's technology provides a streamlined and automated way for customers to easily monitor and certify their supply chain for ESG risks. Their cutting-edge product and large footprint in their home market of Germany positions them well to expand across Europe, as they have already built a significant proprietary supplier database. We look forward to working with Martin and the entire IntegrityNext team as they accelerate on their journey to making supply chains more transparent."
EQT Growth Fund: Business Background
EQT is a venture capital and private equity firm based in Stockholm, Sweden.
The EQT Growth fund invests in companies within four primary tech sub-sectors: enterprise, consumer and prosumer, health, and climate. EQT partners with companies "supported by long-term macro trends, deeply researching each sub-sector so it can invest with complete conviction in the companies that are truly primed for enduring success," the firm indicates.
Typical EQT Growth fund investments range from 50 million to 200 million euros.
As of March 2023, the overall EQT business had 113 billion euros in assets under management within two business segments – Private Capital and Real Assets. EQT owns portfolio companies and assets in Europe, Asia-Pacific and the Americas, the firm notes.