French startup Swan has successfully secured an additional €42 million (approximately $44 million at current exchange rates). This funding marks the second phase of its Series B round, which was initially announced in September 2023.
Swan empowers businesses to provide financial products on a large scale. The firm is capable of producing both virtual and physical cards compatible with Apple Pay and Google Pay. Swan’s corporate clients can customize these cards programmatically, setting spending limits, approved merchants, and more.
Additionally, Swan can establish payment accounts featuring a unique IBAN, which supports pay-ins, pay-outs, and SEPA direct debits. These accounts serve as the funding source for the payment cards.
A number of rapidly growing firms have partnered with Swan for their embedded banking solutions. For example, Pennylane, a French accounting startup that achieved unicorn status last year, utilizes Swan’s services to provide accounts and payment cards to its users.
In a similar fashion, Indy, a comprehensive administrative tool for freelancers, has integrated accounts and cards into its service offerings through Swan. Other notable clients include Agicap, Factorial, Lucca, and Sesame.
Currently, Swan collaborates with 150 companies and manages €1.5 billion in transactions each month.
The second tranche of funding is led by Eight Roads Ventures, which is joined by existing investors Lakestar, Accel, Creandum, Hexa, and Bpifrance; Bpifrance had participated in Swan’s seed financing via its Digital Venture fund.
“We see immense potential in the embedded finance space, with banking services increasingly being integrated directly into existing software and workflows. Since meeting Nicolas and his team during their inception, we’ve been consistently amazed by their swift growth, high-profile customer base, and successful international outreach,” stated Lucile Cornet, a partner at Eight Roads Ventures.
Although the company has not disclosed its valuation, Swan’s co-founder and CEO, Nicolas Benady, informed TechCrunch that it has surpassed previous figures. “We’re not a unicorn just yet, so we refrain from mentioning it,” he added.
While numerous fintech startups rely on other fintech APIs and products for their offerings, Swan has developed its own core banking infrastructure. This capability allows it to provide local IBANs and incorporate country-specific payment features.
For Swan’s clients, the ability to manage funds without direct involvement in the financial transaction process presents an exciting opportunity. Swan takes care of compliance and KYC (Know Your Customer) responsibilities. With the funding obtained on Thursday, Swan plans to expand into more countries, with Italy next on its agenda.
Compiled by Techarena.au.
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