Fintech
Doconomy, the Swedish impact fintech, raises €34 million from UBS Next, CommerzVentures, S&P Global and others
Based in Stockholm Doeconomicsa fintech company that helps banks with tools to fight climate change and improve people’s financial health, announced that it has received €34 million in B-round investment, one of Europe’s “largest funding rounds” in the sector.
The investment was co-led by UBS Next, the venture and innovation arm of UBSand existing investor CommerzVenturesa venture capital firm that invests in climate-focused fintech projects.
S&P Global, a company that provides credit ratings and other financial services, has joined as a new investor. Motive, PostFinance and Tenity, already investors, also participated in the round.
Managing Partner of CommerzVentures, says: “Doconomy enables banking customers to make the best decisions, both for their finances and for the planet. Their solution couldn’t be more timely, as consumers around the world are looking for answers on how to build a sustainable future for themselves and their families.”
Bridging the gap between financial investments and environmental impact
As people increasingly want sustainable options, banks are expected to help them manage their environmental impact. Doconomy says in a statement that research suggests most consumers want eco-friendly choices, but believes banks are not doing enough to support them in this. Doconomy aims to bridge this gap.
Michael Baldinger, Chief Sustainability Officer at UBS, says: “UBS Next’s investment in Doconomy underlines our focus on driving innovation to deliver the actionable data and insights our clients need to make informed choices about their investments and make the change they want to see.”
– A message from our partner –
Doconomy offers banks tools to help their customers manage their environmental footprint in a practical way. The tools encourage environmentally friendly choices while supporting financial health.
This “one-of-a-kind” solution combines behavioral science with advanced data analytics, thanks to Doconomy’s acquisition of Dreams Technology in February 2023.
Brief description of Doconomy
Founded in 2018 by Mathias Wikström and Johan Pihl, Doconomy has served over 100 clients in 35 different markets and has established key partnerships with organizations such as the United Nations Framework Convention on Climate Change (UNFCCC), Mastercard, S&P Trucost and World Wildlife Fund ( WWF).
The company offers a range of products including:
Impactful Transactions: This tool calculates the carbon footprint of financial transactions using the Åland Index methodology, helping people understand the environmental impact of their spending.
Impactful finance: It is a savings solution linked to personal goals and sustainable behaviors. By linking financial objectives to emissions reduction, more informed consumption and investment decisions are encouraged.
Impact Activities: Developed with the UNFCCC, this self-assessment tool helps people understand their overall environmental impact.
Impact education: This module provides resources and tools to help people adopt a more sustainable lifestyle by reducing their climate footprint.
How will the funds be used?
With this new funding, Doconomy plans to expand its presence in North America and enhance its product lineup. The company also tries to get more people to engage and adopt its tools.
Doconomy CEO and co-founder, Mathias Wikström, says: “Doconomy works to help build a world where sustainability it is the norm and is accessible to everyone. We want every transaction to count by giving everyone the chance to do their part in the fight against the climate crisis.”
“To enable banks to be global changemakers, we know we must align planet, purpose and profit. Our unique solution enables users to be more money and climate conscious, while increasing banks’ profits by helping them better understand and engage their customers for a positive impact.”
“We could not achieve our goal for a more sustainable future without the invaluable support of our partners, and we are thrilled to welcome UBS and S&P Global aboard this mission. Together we can bring about positive climate impact on a truly global scale,” adds Wikström.