Context Labs, a data provider that helps companies track carbon emissions, is looking to raise up to USD 150 million from investors, two people familiar with the matter said, amid growing demand from businesses to better assess their environmental footprint.
The company, based in Amsterdam, the Netherlands, and Cambridge, Massachusetts, is working with Barclays on a possible fundraise that could value the company at more than USD 1 billion, one of the people said.
Spokespeople for Context Labs and Barclays declined to comment.
Context Labs has attracted interest from private equity investors as well as large data and energy companies, the person said, adding that a deal could close over the coming months. The person, who requested anonymity because the matter is confidential, cautioned that discussions are ongoing but no deal is guaranteed.
Context Labs uses machine learning technology to help companies across natural gas, chemical and other industries measure their carbon emission footprint. It does so by curating and verifying data on production processes from the source, as opposed to relying on industry estimates.
The company recorded USD 25 million of average recurring revenue in 2022, which it expects to increase to more than USD 100 million this year as it takes on new customers, the source said. It expects to break even by the end of the year, this source said.
Proceeds from the fundraise will go towards hiring more staff, expanding into new industries and acquisitions if opportunities arise, one of the people said.
Context Labs raised USD 28 million in 2022, led by private equity fund BP Energy Partners. Existing investors are expected to reinvest in the business, the person said.
The company was founded in 2013 by chief executive and tech entrepreneur Dan Harple, who owns a majority stake and is a fellow at Massachusetts Institute of Technology’s Sloan School of Management. He was founder and CEO of Context Media, which was bought by Oracle in 2005.
