Vaayu Raises $1.6M to Cut Retail Carbon Emissions

The Rise of Carbon Tracking in Retail

Carbon tracking has emerged as a significant trend within the technology sector. Previously, we’ve examined broader startups focused on providing this service to businesses generally, like Plan A Earth based in Berlin.

However, a clear opportunity exists to specialize within specific industry verticals and create tailored solutions.

Vaayu is capitalizing on this opportunity, offering a carbon tracking platform specifically designed for retailers. The company has recently secured $1.57 million in pre-seed funding, led by CapitalT. The round also included participation from several angel investors, notably Atomico’s Angel Program, Planet Positive LP, Saarbrücker 21, Expedite Ventures and NP-Hard Ventures.

The Urgent Need for Carbon Tracking in Fashion Retail

The retail fashion industry, in particular, faces an urgent need for robust carbon tracking solutions. Currently, this sector is responsible for 10% of global carbon emissions annually.

This figure surpasses the combined emissions from all international flights and maritime shipping.

Vaayu integrates with popular point-of-sale systems, including Shopify and Webflow. This integration allows the platform to gather data related to logistics, operations, and packaging.

By collecting this data, Vaayu enables retailers to effectively monitor, measure, and ultimately reduce their carbon emissions. Traditional methods often involve annual emissions calculations, which lack the precision needed for effective change.

Vaayu’s Founding and Current Clientele

Founded in 2020, Vaayu was established by Namrata Sandhu (CEO), formerly the Head of Sustainability at Zalando, alongside Anita Daminov (CPO) and Luca Schmid (CTO).

The company currently serves 25 global brand customers, including Missoma, Armed Angels, and Organic Basics.

Sandhu stated that with only nine years remaining to meet the UN’s goal of a 50% reduction in carbon emissions by 2030, retailers – as the third-largest contributors to global emissions – must act decisively.

She emphasized Vaayu’s role in assisting retailers to measure, monitor, and reduce their carbon footprint across the entire supply chain, acknowledging the complexities and costs involved.

Automated Carbon Footprint Calculation

During a conversation, Sandhu explained that focusing on the retail sector allows for automation of the carbon footprint calculation process.

This automation enables retailers to obtain their carbon footprint with just three clicks, providing accurate data for targeted reductions.

This approach utilizes software, eliminating the need for manual intervention or reliance on spreadsheets.

By concentrating on retail, Vaayu can streamline both the calculation and reduction processes.

Looking Ahead

Sandhu expressed delight at the support from CapitalT, a female-led firm that quickly understood their vision.

She anticipates further development of Vaayu in the coming months, aiming to reach a wider range of retailers and contribute to mitigating the climate crisis.

Janneke Niessen, founding partner at CapitalT, highlighted their excitement in supporting Vaayu’s mission to reduce carbon emissions for retailers globally.

Niessen noted the scalability of Vaayu’s product and its rapid implementation, expressing confidence that the experienced team will position Vaayu as a leading climate tech company in Europe and worldwide.