The weather forecasting and intelligence service ClimaCell announced it had raised a $23 million Series C round co-led by new investor Pitango Growth and existing investor Square Peg Captial.
ClimaCell co-founder and CEO Shimon Elkabetz established the round came together well after the worldwide COVID-19 lockdowns had started and the team never met with its new investors in person.
“We took some aggressive but respectful actions around reducing our expenses and created a significant runway,” Elkabetz explained. “We didn’t really need to raise money now, but this opportunity came to us and we decided to take it, because it gives us a significant opportunity to invest in strategic things.”
Given the changing business climate, the company did double down on its efforts to brand its service as an intelligence platform that helps businesses make smart decisions about the operations, even if they are not meteorologists.
“65% of the world’s GDP is being impacted by weather events. ClimaCell is the only SaaS company that enables actionable items ahead of weather events rather than reacting to them and their implications and ramifications,” said Aaron Mankovski, Managing General Partner at Pitango Growth.
“The opportunities coming to ClimaCell across industries including supply chain and logistics, railroads, trucking, shipping, on-demand, energy, insurance, and more represent a complete upending of the existing competitive landscape and is a testament to being laser-focused on customer value.”
Elkabetz noted that the company plans to use the new funding to expand both its go-to-market efforts and to focus on the fundamental R&D that makes its platform work. He wasn’t quite ready to share what those R&D efforts will look like, but he expects to be able to announce these new capabilities “soon.”
The company also expects to launch some updates to its consumer mobile app soon. For Elkabetz, the consumer app helps spread the ClimaCell brand but he also expects that it can become a real business in its own right.