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The French company dealing with Pennylane accounting software doubled its valuation of up to EUR 2 billion ($ 2.16 billion) in the new funding round of EUR 75 million.
Pennylane told CNBC that he had raised fresh funds from many enterprises, and Secoia Capital ran a round and Alphabet Capital, Meritech and DST Global also participates.
Founded in 2020, Pennylane sells something that it calls the accounting platform “Everything in one”, which is used by accountants and other financial specialists.
The platform is focused primarily at small and medium -sized companies, offering tools for functions covering expenses, invoicing, cash flow management and financial forecasting.
“We came to adapt a product that looks a bit (Intitut) QuickBooks or Xero But adapting it to continental accounting needs, starting from France, said CNBC General Director Pennylane and co-founder of Arthur Waller.
Pennylane currently serves about 4,500 accounting companies and over 350,000 small and medium -sized enterprises. The startup was previously valued at EUR 1 billion in the 2024 investment round.
European expansion
For now, Pennylane only operates in France. However, after the new collection of funds, Startup now plans to expand its services in Europe – starting from Germany in the summer.
“It will be a lot of work. It took us about five years to mature the product in France,” said Waller, adding that he hopes to achieve the maturity of the product in Germany in a shorter period of time.
Pennylane plans to end the year about EUR 100 million of annual repetitive revenues – the measure of annual revenues generated from subscriptions that renew each year.
“We'll get Breakeven by the end of the year,” Waller said, adding that Pennylane has lower customer acquisition costs than other fintechs. “75% of our costs are research and development (research and development)” – he added.
Pennylane also plans to increase employment after the new funding round. By the end of 2025, he wants to grow up to 800 employees, currently compared to 550.
“Second pilot” for accountants
Like many other fintechs, Pennylane includes artificial intelligence. Waller said that the startup uses this technology to help clients automate accounting and slow down to other things, such as advisory services.
“Because we have a modern technical stack, we are able to set all kinds of artificial intelligence, but also Genai, in the product,” said Waller CNBC. “We really try to build a” second pilot “for an accountant.”
He added that new electronic invoicing regulations entering all over Europe are pushing more and more companies to consider new digital products that will meet their accounting needs.
“Each company in France during the year will have to choose the product operator to issue and receive invoices,” said Waller, calling e-e-e-gliga “a huge market”.
Luciana Lixandru, a sequoia partner who sits on the Pennylane management, said that the reforms are “a great market opportunity” because the accounting industry is still catching up in the field of digitization.
“The reality is that the market is very crushed,” said Lixandru CNBC via e -mail. “There are one or two decades in each country, and few options that serve both medium and their accountant.”