Fitsol, a ClimateTech startup specializing in AI-driven decarbonization solutions for the manufacturing sector, has successfully raised $1 million in a seed funding round led by Transition VC.
About Fitsol
Founded in 2022 by Anand Pathak, Akshay Tandon, Manoj Sharma, Sunil Bansal, and Vikas Kalra, Fitsol offers manufacturers comprehensive tools to measure, report, benchmark, and actively reduce carbon emissions. Their flagship AI-powered platform, Kyoto, monitors emissions across Scope 1, 2, and 3, with a particular emphasis on Scope 3 emissions, which often constitute 70-90% of a company's carbon footprint.
Services and Impact
In addition to Kyoto, Fitsol provides a sustainability marketplace featuring solutions such as:
- Green logistics
- Sustainable packaging
- Eco-friendly procurement
- Waste management
- Carbon offsetting services
This integrated approach has enabled Fitsol to achieve cost savings of 15-20% across its carbon reduction projects, demonstrating that sustainability and cost efficiency can coexist.
Clientele
Fitsol's client base includes industry leaders such as JK Tyre, JBM Group, Rockman Industries, Hindware, Musashi, and Penguin Random House India. The company also collaborates with suppliers for major automotive brands like Mahindra, Suzuki, Hero Motorcorp, Royal Enfield, OLA Electric, and Ather.
Utilization of Funds
The newly acquired capital will be directed towards:
- Enhancing Kyoto's AI capabilities by adding modules for lifecycle assessments and product carbon footprints.
- Expanding the team in technology, business development, and customer success to support a growing client base.
- Developing a first-of-its-kind sustainability solutions marketplace tailored for the B2B segment.
- Geographical expansion, with plans to initiate operations in the Middle East while maintaining a strong focus on the Indian market.
Fitsol aims to manage 500 million tonnes of carbon emissions in supply chains within the next two years, positioning itself as a global leader in manufacturing industry decarbonization.
Investor Insights
Shoeb Ali, Co-founder & Managing Partner at Transition VC, remarked, "Fitsol is building a carbon platform for the future that provides customers with solutions for carbon footprint management including carbon reporting, monitoring, auditing, reduction, and offset of carbon emissions. While many platforms exist, Fitsol stands out by focusing on Scope 3 emissions, which account for over 70% of carbon emissions in most industries. Their cost-effective solutions for reducing carbon footprints in logistics, supply chain, and packaging make them a game-changer in the industry."
Our Opinion on the News
Fitsol's successful seed funding round underscores the growing importance of comprehensive carbon management solutions in the manufacturing sector. By focusing on Scope 3 emissions, Fitsol addresses a critical area often overlooked yet essential for achieving net-zero targets. Their integrated approach not only aids in environmental sustainability but also offers cost-saving benefits, making it an attractive proposition for manufacturers globally. The planned expansion into the Middle East and the development of a B2B sustainability marketplace indicate a strategic move to capitalize on the increasing demand for sustainable industrial practices. This funding milestone positions Fitsol to significantly impact global supply chain emissions and sets a precedent for innovation in the ClimateTech industry.
Source: ISN