French fintech unicorn Pennylane, which provides accounting software, has raised a €175m Series E.
The round was led by US-based growth investors TCV and Blackstone Growth, with participation from existing investors Sequoia Capital, DST Global, Capital G and Meritech Capital.
With the fundraise Pennylane reportedly achieved a valuation of $4.25bn (€3.6bn), which one source with direct knowledge confirmed to Sifted. The startup wrote in a post that the cofounders still have “absolute control” of the company.
Pennylane has built a platform to improve workflows between enterprises and their accountants, which centralises invoices, tax returns and financial statements. The company says its product is used by 6k accountants and 800k enterprises, largely in France as well as in Germany, where the startup expanded last year.
Pennylane says it is now nearly profitable; last year cofounder Arthur Waller told Sifted it was on track to reach €100m in annual recurring revenues (ARR) in 2025.
The Series E comes less than a year after Pennylane raised a €75m Series D and brings total funding to nearly €360m.
“Our growth has accelerated [since the last fundraise],” said founder Arthur Waller in a LinkedIn post. “But the market around us is accelerating too, with more consolidation and a race to build a financial super app.”
“This is why we decided to accelerate the pace of our research and development investments even more.”
Much of the funding will be dedicated to R&D, therefore, and to leverage generative AI to build an analysis copilot for users, as well as to accelerate expansion across Europe.
