French fintech startup Pennylane has secured a fresh €75 million ($81 million) funding round, doubling its valuation to an impressive €2 billion ($2.16 billion). This latest investment was co-led by Sequoia Capital, CapitalG (Alphabet’s growth fund), and Meritech, with participation from DST Global, signaling strong investor confidence in Pennylane’s rapid growth.
Launched in 2019 by Arthur Waller and the original PriceMatch team, Pennylane has developed a robust all-in-one accounting platform tailored to accountants and the small and mid-sized businesses (SMBs) they support. The software merges key financial tools—invoicing, expense tracking, cash flow management, and financial forecasting—into a single interface designed specifically for the French market.
Unlike global tools like QuickBooks or Xero, Pennylane’s approach is highly localized. “We built a product inspired by QuickBooks and Xero but adapted it to the needs of continental accountants, starting with France,” said Waller in a CNBC interview.
The platform is now used by over 4,500 accounting firms and more than 350,000 SMBs across France. With its previous valuation at €1 billion, the new valuation marks a significant leap, reflecting strong user adoption and growing market momentum.
Germany Next in Line
Until now, Pennylane has operated exclusively in France. But that’s about to change. Fueled by its latest round, the startup is preparing to launch in Germany this summer as it begins its wider European expansion. “It took five years to build the product for France. We want to get it right in Germany within two years,” Waller said.
By the end of this year, Pennylane aims to hit €100 million in annual recurring revenue (ARR) and reach breakeven, setting it apart from many fintech peers still burning cash. Notably, the company spends just 25% of its budget on customer acquisition, directing the majority—75%—into R&D to refine its tech offering.
Hiring Plans and AI Ambitions
Pennylane is also ramping up hiring. The current team of 550 is expected to grow to 800 employees by the end of 2025, supporting both product development and international rollout.
In line with broader fintech trends, the company is leaning heavily into AI and GenAI integrations. These features aim to automate routine accounting tasks like bookkeeping, giving accountants more time for client advisory work. “We want to create a true co-pilot for accountants,” Waller emphasized.
Upcoming e-invoicing mandates across Europe are expected to play in Pennylane’s favor. France, for example, is moving toward regulations that will soon require every business to use a certified digital invoicing platform. “Every business in France will need to choose a software provider within the year,” Waller said, calling it a “massive opportunity” for platforms like Pennylane.
A Fragmented Market Ripe for Disruption
According to Luciana Lixandru, Sequoia partner and Pennylane board member, the market across Europe remains fragmented and outdated. “In each country, you typically have one or two incumbent players that are decades old. Very few platforms actually serve both SMBs and accountants effectively,” she noted.
With deep-pocketed backers, growing traction in France, and plans to expand across Europe, Pennylane is positioning itself to become the go-to financial platform for accountants and businesses alike.
