Karomia raises €2M for its AI platform that writes CSRD-compliant ESG reports in hours, not months

Ghent, February 24 - Belgian software company Karomia has secured €2 million in funding, led by Entourage, imec.istart Future Fund & imec.istart Fund, to expand its AI-powered ESG reporting platform. As the Corporate Sustainability Reporting Directive (CSRD) becomes essential for businesses, Karomia is shifting the focus from compliance to sustainable impact. The platform reduces reporting time by 90%, ensuring companies stay compliant without the usual complexity. While other ESG reporting solutions take months to produce a CSRD-compliant report, Karomia delivers a near-final version in hours.

Faster and Accurate ESG Reporting

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

Every piece of information is 100% traceable to its source, ensuring accuracy and transparency. Businesses know exactly what’s in the report and where it’s coming from. "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.

This makes Karomia’s proprietary AI platform faster, more accurate, and more user-friendly than any other solution in the market. The platform is used by over 45 customers, from large enterprises to SMEs, across various industries.

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.”

Focus on Impact

CSRD regulations continue to evolve, as seen with the EU Omnibus simplification package. Karomia ensures businesses stay ahead of these changes effortlessly. Regulatory updates are tackled in near-real time, ensuring companies are equipped to navigate the volatile regulatory landscape. By drastically reducing reporting time, the platform allows companies to focus on real sustainability initiatives, turning compliance from a burden into a competitive advantage.

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.

Partners like Mobius, PwC and many others use the Karomia platform in their consulting activities. By using the Karomia platform, the consultants don’t need to spend time in doing extensive gap-assessments or filling the ESG report. That way, sustainability consultants can focus on making impact for their clients.

The investment

The investment will enable Karomia to further refine its platform, making CSRD compliance even 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.”

About Karomia

Founded in 2024, 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. Through streamlined compliance processes, Karomia helps businesses move beyond regulations to create real, lasting sustainability impact.

‍

‍Read more:‍

L'Echo – “La start-up gantoise Karomia lève 2 millions pour ses rapports de durabilité rapides,” published on Lecho.be.

De Tijd – “Gentse Karomia verleidt investeerders met instant duurzaamheidsverslagen,” published on Tijd.be.

Trends – “Start-up Karomia haalt 2 miljoen euro op voor geautomatiseerde duurzaamheidsrapporten,” published on Trends.knack.be.

Kanaal Z – Z-Nieuws – “Karomia haalt 2 miljoen op voor AI-platform dat ESG-rapportage 90% sneller maakt,” published on Trends.knack.be