French accounting fintech Pennylane has raised €75 million in its latest funding round, doubling its valuation to €2.2 billion, CNBC reported.
The round was led by Sequoia Capital, with participation from Alphabet’s CapitalG, Meritech, and DST Global.
Founded in 2020, Pennylane offers an all-in-one accounting platform designed specifically for SMEs.
The software includes tools for expensing, invoicing, cash flow management, and financial forecasting.
Chief Executive and Co-Founder, Arthur Waller. explained,
“We came in tailoring a product that looks a bit like [Intuit’s] QuickBooks or Xero but adapting it to the needs of continental accountants, starting with France.”
The company currently serves around 4,500 accounting firms and over 350,000 SMEs. With the new funding, Pennylane plans to expand its presence across Europe, beginning with Germany.
The firm expects to mature its product in Germany within two years—a process that took five years in France.
“It is going to be a lot of work,”
Waller acknowledged.
The fintech company also aims to hit €100 million in annual recurring revenue and reach breakeven by the end of the year, aided by lower customer acquisition costs.
Pennylane plans to grow its workforce from 550 to 800 employees by the end of 2025.
Leveraging AI technology, the company is working to automate bookkeeping and enhance advisory services.
“Because we have a modern tech stack, we are able to embed all kinds of AI, but also GenAI, into the product,”
Waller said.
“We are really trying to build a ‘co-pilot’ for the accountant.”
New electronic invoicing regulations across Europe are further fuelling demand for digital accounting tools.
“Every business in France within a year from now will have to choose a product operator to issue and receive invoices,”
Waller noted, pointing to the growing market potential.
Sequoia partner Luciana Lixandru described the regulatory reforms as a “massive market opportunity” given the fragmented nature of the accounting sector.
Featured image credit: Pennylane
