Dcycle, the Spanish start-up specialized in sustainability data management, has announced the complete acquisition of ESG-X, a Munich-based software firm recognized for its AI-driven sustainability reporting solutions. The financial details of the deal have not been disclosed. According to Dcycle, this integration represents a key advancement in its European expansion strategy and strengthens its position as a prominent player in the ESG software sector, which is currently undergoing consolidation. The operation combines two essential strengths for the European market: Dcycle's infrastructure for managing non-financial data and ESG-X's AI technology, focused on double materiality assessments and compliance in corporate sustainability. Thanks to this union, Dcycle expands its local support in Spain, Germany, and the UK, markets that concentrate most of the European regulatory demands for sustainability reporting. Founded in Madrid in 2020, Dcycle operates as a B2B SaaS platform, allowing companies to centralize and manage their sustainability data. The company has raised over 10 million euros from investors such as Samaipata, Ship2B Ventures, Sabadell Venture Capital, Draper B1, and Angels Capital, the fund of Juan Roig, president of Mercadona. Dcycle remains committed to disciplined growth, combining organic expansion with the integration of complementary capabilities. On the other hand, ESG-X, which emerged in Munich through the Antler acceleration program, has built its reputation thanks to proprietary AI models that automate materiality assessments and adapt business data to ESG standards. Its data infrastructure, hosted in certified centers in Germany, meets the strict data residency requirements of the DACH region (Germany, Austria, and Switzerland). Juanjo Mestre, CEO and co-founder of Dcycle, emphasizes that the European ESG software market is undergoing a consolidation phase, with over 100 fragmented solutions. “Our vision is clear: the only way to scale sustainability data efficiently is through integrated platforms that allow companies to control their data infrastructure. This acquisition aims to build the best possible product for our clients,” he states. Dcycle highlights that Germany is a strategic market, characterized by high demands in ESG management, especially in the industrial mid-market, which faces similar regulatory pressures to large listed companies but requires more tailored solutions. The ESG-X team, with a presence in Munich and Düsseldorf, brings expertise in the regulatory requirements of the DACH region and a practical approach for the mid-market. The integration strengthens Dcycle's platform in key areas such as image recognition for energy consumption, double materiality assessments aligned with the CSRD, optimization of EcoVadis ratings, automated ESRS reporting in accordance with the European AI Act, and data residency in certified centers in Germany. Source: cincodias.elpais.com