Paris-based Pennylane, a company building a financial OS (Operating System) for European SMEs, has secured €75M from Meritech, Capital G, and its historical shareholders Sequoia and DST.
“This fundraising illustrates the confidence of our investors and confirms our ambition to make Pennylane the benchmark solution in integrated financial management and electronic invoicing,” says Arthur Waller, CEO and co-founder of Pennylane.
The funding announcement comes around a year after raising €40M in a Series C round of funding at a valuation of over $1B.
This fundraising will support Pennylane in making integrated financial management the standard in Europe while helping firms evolve into strategic advisors with a broader service offering.
The company will also use the funds to grow its employees from 550 to 800 by the end of 2025, with close to half of its team members working in R&D.
Although we were not actively seeking funding, this opportunity allows us to further accelerate the development of additional services around purchase and sales invoices and to offer companies and firms a fully integrated and interoperable solution designed to meet the challenges of this transformation,” adds Waller.
The co-founders and employees have control over strategy and business decisions because they hold the majority of voting rights and have representation on the Board of Directors, as outlined in the commitment charter filed with a bailiff in September 2024.
The funding announcement comes as the French company tripled the number of SMEs on its platform in 12 months. The investment comes ahead of electronic invoicing reform, which will impact many European countries.
Pennylane: Building financial OS for European SMEs
Founded in 2020, Pennylane combines production software for chartered accountants and financial management tools for their clients.
The company offers an integrated platform that combines financial management, business accounts, accounting production, and a Partner Dematerialisation Platform (PDP).
This 4-in-1 approach enables VSEs and SMEs to manage all their finances securely, without having to use multiple tools.
As per the company’s claims, the users can access all their reliable, up-to-date, and actionable data, settle their purchases, and manage their invoicing without leaving the platform.
At present, Pennylane already supports more than 4,500 accounting firms and over 350,000 businesses of all sizes.
“Our PDP infrastructure is already proven, and our ecosystem is ready to support companies and accounting firms in this strategic transition. Thanks to our platform, companies can now send and receive electronic invoices in Factur-X format, enabling them to anticipate the reform with confidence and comply with the new obligations with ease,” adds Waller.
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