Swan Soars with $44 Million in Series B Funding
French startup Swan has recently secured an impressive €42 million (approximately $44 million) in funding, marking the latest milestone in its journey. This funding round represents the second phase of the Series B round, originally unveiled in September 2023.
Swan’s primary focus lies in enabling other companies to provide financial products on a large scale. Through its innovative approach, the company can create virtual and physical cards compatible with popular payment systems like Apple Pay and Google Pay. These cards can be customized by Swan’s corporate clients, allowing them to set spending limits, specify authorized merchants, and more.
Moreover, Swan has the capacity to establish payment accounts featuring individual IBANs. These accounts support various financial transactions, including pay-ins, pay-outs, and SEPA direct debits, serving as the primary funding source for the associated payment cards.
The success of Swan has attracted a diverse array of fast-growing companies seeking to enhance their services. Notably, Pennylane, a French accounting startup that achieved unicorn status in the previous year, now offers accounts and payment cards to its clientele, leveraging Swan’s cutting-edge capabilities. Similarly, Indy, an all-in-one administrative assistant tailored for freelancers, has integrated Swan’s solutions to bolster its offerings. Additional notable clients include Agicap, Factorial, Lucca, and Sesame, all benefiting from Swan’s seamless financial solutions.
In a testament to Swan’s expanding reach and impact, the company collaborates with 150 organizations and processes a substantial €1.5 billion in monthly transactions. The second tranche of funding is spearheaded by Eight Road Ventures, alongside returning investors such as Lakestar, Accel, Creandum, Hexa, and Bpifrance. Notably, Bpifrance had initially backed Swan during its seed round through the Digital Venture fund.
Lucile Cornet, a partner at Eight Roads Ventures, expressed confidence in Swan’s trajectory, emphasizing the vast potential within the embedded finance landscape. Cornet lauded Swan’s rapid growth, distinguished clientele, and successful global expansion, underscoring the company’s strategic positioning in the market.
While Swan refrains from disclosing its current valuation, CEO Nicolas Benady hinted at a remarkable increase, signaling the company’s upward trajectory. Despite not yet achieving unicorn status, Swan’s valuation reflects its growing influence and market presence.
Unlike many fintech startups relying on existing APIs, Swan has developed its proprietary core banking system, enabling the provision of local IBANs and country-specific payment solutions. This distinctive approach affords Swan’s customers the opportunity to manage finances seamlessly, bypassing direct handling of money while ensuring compliance with regulatory standards like KYC.
With the latest funding infusion, Swan is poised to expand its operations to additional countries, with Italy slated as the next destination on its expansion roadmap.
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Expert Insights on Swan’s Success
In a statement underscoring Swan’s strategic vision and market positioning, Lucile Cornet of Eight Roads Ventures emphasized the vast potential within the embedded finance sector. Cornet’s endorsement of Swan’s growth trajectory, premium clientele, and successful global expansion underscores the company’s strategic advantage amidst a rapidly evolving financial landscape.
CEO Nicolas Benady’s remarks on Swan’s valuation reflect the company’s upward trajectory and market influence, positioning Swan as a formidable player within the fintech realm. As Swan continues to innovate and expand its footprint across international markets, its commitment to seamless financial solutions and regulatory compliance sets the stage for continued success and growth.
