Fitsol, a SaaS platform founded in 2022, is helping logistics companies measure, manage, and reduce their carbon footprint, especially Scope 3 emissions. These emissions, which account for the bulk of a company’s carbon footprint, have been a significant challenge for businesses, particularly in India, where solutions to track and reduce them have been limited.
Fitsol aims to fill this gap by providing a platform that uses artificial intelligence (AI) to monitor and report carbon emissions in real-time, helping companies to work towards sustainability and carbon neutrality.
The startup was founded by Anand Pathak, Akshay Tandon, Sunil Bansal, and Vikas Kalra, who bring extensive experience in logistics and supply chain management. The co-founders have previously worked in prominent roles at companies like TVS Supply Chain Solutions, , , , and Hindware Home Innovation Limited.
Pathak, inspired by his experience in emission-reduction projects at TVS Supply Chain Solutions and Samvardhana Motherson Group, recognised the lack of tech solutions in India to address Scope 3 emissions, which made him to start Fitsol.
“Most manufacturing companies generate over 90% of their emissions under Scope 3, with figures as high as 97% for Tesla and 98-99% for Apple. I began looking for tech solutions to measure and reduce Scope 3 emissions,” Pathak tells YourStory.
He says, around two and a half years ago, such solutions were scarce in India, as the focus at the time was primarily on Scope 1 and Scope 2 emissions. Larger companies, meanwhile, were profiting by selling carbon credits based only on these scopes.
“I could not find any tech companies working on a scope three reduction and measurement. This is when I saw the gap in the market and resigned from my job to work on Fitsol,” says Pathak.
Product offerings
The 35-member team provides various services, including sustainable logistics solutions, green transportation using lower-emission vehicles, energy-efficient warehousing, and sustainable packaging options.
“Most customers are eager to reduce their carbon footprint—they recognise the importance of addressing this issue. However, many are scared, thinking it will involve a lot of money. Our approach is to give them the confidence by showing that reducing carbon emissions can often go hand-in-hand with cost savings,” Pathak explains.
The Delhi-based company helps organisations measure their carbon footprint, supports them in setting science-based net-zero targets, and assists in achieving green certifications through partnerships.
Fitsol follows a three-step approach for assessing the carbon health of companies. The first step is consistent measurement of carbon health parameters of the organisation—Scope 1, Scope 2, and Scope 3 emissions. Many companies reduce their Scope 1 and 2 emissions by outsourcing activities, which shifts the burden to Scope 3.
“Once the health parameters are tracked, companies often turn to consultants—like the Big Four (McKinsey, BCG, Bain) or independent experts. These consultants provide a roadmap of actions to take over the next 2, 5, or 10 years, including strategies to reduce emissions and improve overall carbon health,” Pathak explains.
The third part is working with this complete ecosystem provider who can help customers in reducing carbon footprint. This includes manufacturing firms working with startups, product, or service providers to implement solutions that reduce emissions.
“We want to be the single point of contact for our customers, rather than just being their accounting and reporting partner. So, we are in the complete journey for the customer till they achieve their carbon neutral or carbon zero goal in next 15 to 20 years or 25. We are also leveraging advanced AI tools to ease the process of data collection and cleaning,” Pathak says.
The company also offers allied services such as logistics management, sustainable packaging, waste management, and carbon credit solutions.
The business and plans ahead
As per Precedence Research, the global carbon footprint management market was valued at $12.22 billion in 2024 and is expected to grow to $27.08 billion by 2033.
With a current revenue of Rs 17 crore in FY24, Fitsol operates in two verticals—carbon SaaS tool and a marketplace model.
The carbon SaaS tool focuses on accounting and reporting, and helps companies track, measure, and report their carbon emissions across different scopes (Scope 1, 2, and 3).
The marketplace model provides two services aimed at sustainability efforts—one is sustainable logistic packaging solutions for customers, focusing on eco-friendly practices, and the other is a platform for waste management and carbon credits, enabling businesses to recycle waste or trade carbon credits to offset their emissions.
Currently bootstrapped, Fitsol has raised Rs 1.8 crore by GetVantage and plans to raise additional funds soon. Fitsol’s revenue model includes SaaS services available via annual subscriptions with freemium and paid models. The pricing for accounting services ranges from Rs 10 lakh to Rs 50 lakh for reporting services.
“We’re targeting Rs 30 crore in revenue and an ARR of Rs 48 crore by December, with a goal of Rs 60 crore by March. Over 90% of our revenue comes from the marketplace model, while Carbon SaaS contributes a single-digit percentage,” Pathak reveals.
The allied service or marketplace revenue model consists of multi-year contracts ranging from 2 to 5 years with customised pricing, with an average contract size of Rs 5 crore.
Some of Fitsol’s notable clients include SKH Housing, Maruti Suzuki, Toyota Tshusho, and Penguin Random House. Fitsol currently has 20 customers across India.
In addition to its core offerings, Fitsol is developing a chatbot, designed to provide global Environmental, Social, and Governance (ESG) data and assist answer consulting-related queries. The tool is still in its beta phase and hasn’t been released to customers due to accuracy concerns, Pathak says.
“We are a little bit cautious on this. Before launching, we conducted extensive internal testing and offered a free version of the chatbot to select long-term customers, informing them about potential errors while providing free credits to encourage feedback. Whatever the result is, there is some manual intervention by the team to check the report generated,” he explains.
The startup competes with other companies like altM, NewTrace, and Varaha the carbon management and sustainability space.
Fitsol was also part of YourStory’s TechSparks, one of India’s premier startup events, this year. It made it to YourStory’s Tech30 list this year, highlighting its potential as one of the most promising startups in the country for 2024.
