ESGAgent.ai raises seed funding to automate compliance

ESGAgent.ai has closed a seed funding round led by DNX Ventures, taking the Brisbane startup's total funding to AUD $1.7 million.

The new capital will support product development and customer growth as Australian businesses face rising compliance demands across climate disclosure, emissions reporting, workplace safety, modern slavery, biodiversity and governance.

ESGAgent.ai sells software for heavy industry that uses artificial intelligence to automate reporting and compliance work. It is targeting sectors where climate, safety and governance obligations are expanding, and where businesses have often relied on spreadsheets, consultants and separate internal systems.

The investment is also notable for DNX Ventures, marking the venture firm's second backing of an Australian startup. Based in Tokyo and Silicon Valley, the investor focuses on early-stage business technology companies.

Regulatory pressure is increasing for many local businesses. Thousands of organisations are expected to come into scope under Australian sustainability reporting rules, including the Australian Accounting Standards Board's AASB S2 framework, over the next two years after the first group of entities reached their reporting deadline.

That shift has created a market for software that can reduce the labour involved in gathering data, preparing reports and managing regulatory processes. ESGAgent.ai says its system can turn work that traditionally took months into tasks completed within hours.

Founder Shan Vahora said the company was established in response to the growing burden on industry.

"We built ESGAgent.ai because compliance is becoming increasingly complex, costly and resource-intensive for Australian industry," said Shan Vahora, Founder of ESGAgent.ai. "With growing regulatory expectations across climate, safety and governance, many organisations still rely on old-school spreadsheets, consultants and fragmented systems. We have developed an AI-native platform that helps businesses automate that burden and turn compliance into a strategic advantage rather than an administrative exercise."

The startup already has customers in mining, food manufacturing and engineering consulting. Its software is being used for carbon reporting, climate risk management and safety compliance work.

Leadership hires

Alongside the funding, the business has added two senior figures to its leadership team. Mike Duggan has joined as Executive General Manager, while Greg Steele has come on board as an investor and Director.

Duggan previously worked as a Senior Director at Ashurst Risk Advisory and advised large companies on risk, governance and regulatory compliance at Deloitte. Steele was most recently Global Chief Commercial Officer at Arcadis and has worked across infrastructure, mining and industrial markets.

The appointments add industry experience as the company seeks to win more work in highly regulated sectors. They also broaden its commercial and governance expertise at a stage when early-stage software groups often shift from product development to wider adoption.

DNX Ventures Principal Yurika Imuta said the firm sees a significant opportunity in regulated industries.

"ESGAgent.ai is our second Australian investment, which reflects our confidence in the strength of the nation's innovation and the company's vision to transform how heavy industry manages compliance using a native AI platform. ESGAgent.ai has demonstrated strong early customer traction and built a platform that addresses compliance challenges in a practical and scalable way. We are excited about its broader opportunity to become the default single system of record for compliance across some of Australia's most highly regulated industries," said Imuta.

ESGAgent.ai's pitch is that companies want to bring several strands of compliance work into one system rather than run separate processes for climate disclosures, safety obligations, workforce reporting and broader governance requirements. Its longer-term aim is to become an end-to-end compliance platform for heavily regulated Australian industries.

Australia's mining, energy, utilities and manufacturing sectors are a logical target because they face overlapping demands from environmental rules, workplace legislation and investor scrutiny. Many of those businesses already use specialist advisers for reporting and risk work, making compliance expensive and time-consuming.

By seeking to automate parts of that process, ESGAgent.ai is entering a growing market for software that applies generative AI and workflow tools to regulatory tasks. Investors are watching closely for startups that can show early customer demand in areas where compliance budgets are already established.

"With the backing of DNX Ventures, Greg and Mike, it validates why we built the company in the first place. We now have the opportunity to accelerate the business and support more organisations as they navigate a rapidly changing regulatory environment," said Vahora.