Swan, a Paris-based fintech specialising in embedded banking, has secured €42M in its Series B round of funding. The investment was led by Eight Roads Ventures, with participation from existing investors Lakestar, Accel, Creandum, Hexa, and BPI France.
Lucile Cornet, Partner at Eight Roads Ventures, says, “We believe the embedded finance opportunity is immense, and that banking services will increasingly be offered directly where users are, within existing software and workflows.”
“We’ve known Nicolas and his team since their early days and have been consistently impressed by their rapid progress, Tier 1 customer base, and successful international expansion.”
Embedded banking
Founded in 2019, Swan is a fintech that offers embedded banking services, allowing businesses to integrate features like accounts, cards, and payments into their products. The company processes over €1.5B in monthly transactions for more than 150 clients.
Swan allows companies to offer financial services without obtaining regulatory approval. Customers such as Pennylane and Indy use the company’s infrastructure to provide accounts and payment functions, enabling payment processing and reconciliation within a single platform.
Nicolas Benady, founder & CEO of Swan, says, “In the future, I believe business management software will become a key distributor of banking services. Whether it’s for HR or Accounting, these tools will offer banking features seamlessly integrated into the user’s workflow.”
“This means you’ll have access to banking services right when you need them, directly in the tool you’re using. We call this embedded banking. At Swan, we’re working hard to provide both the technology and compliance framework to make this a reality for SMEs across Europe.”
Embedding financial products creates new revenue streams for companies through interchange fees, interest income, and subscription fees while improving customer retention. According to Swan, advances in technology have simplified adoption, and rising interest rates have increased its financial appeal.
Unlike the shift to internet and mobile banking, which improved access to traditional banking services, embedded banking integrates financial transactions directly into existing applications and platforms, streamlining user interactions.
The company differentiates itself in embedded finance with a self-built core banking system, localised offerings, and a unique regulatory framework. By developing its infrastructure in-house, Swan maintains control over its product roadmap, enabling advanced banking functionalities. Local IBANs and country-specific payment solutions further enhance usability.
Swan, which works with businesses serving SMBs, has experienced a 250 per cent growth in monthly revenue and transaction volumes, along with a 370 per cent increase in the number of cards issued since its last funding round.
Capital utilisation
In the future, Swan looks to scale its operations to support partners throughout the entire process, from project conception to go-live.
Swan will use the funds to expand in key European markets like Italy, enhance banking solutions for SMBs, and accelerate tailored card programs.
With plans to hire 85 new employees, the company aims to strengthen its position in the embedded finance sector, develop its products, and support its growing customer base across Europe.
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