Pennylane, a French accounting technology firm, is reportedly raising roughly $50 million.
Four people familiar with the matter have confirmed that DST Global, an existing investor in Revolut, will be the lead investor in the next round.
It is expected that the new capital represents an increase over the company’s previous deal, which closed in January of 2022.
Revolut investor DST Global is reportedly leading a fresh fundraising round for Pennylane, a fintech that aspires to become the main financial operating system for SMBs.
The French startup helps companies streamline invoicing and cash flow with backing from US investment powerhouse Sequoia.
According to Insider’s sources, Pennylane’s valuation would increase to $600 million to $650 million as a result of the new investment, up from roughly $500 million a little over a year ago. Around $50 million will be raised by the Paris-based firm, according to two sources.
There may be adjustments to the final numbers when the new deal nears completion.
Pennylane opted not to say anything. When reached for comment, DST Global did not immediately respond.
According to two people familiar with the matter, the startup was valued at between $450 million and $500 million during its most recent $57 million Series B financing, which was led by Sequoia in January 2022. Pennylane’s latest round of funding comes as private market values for digital businesses have fallen in the wake of a decline in publicly traded stocks.
According to PitchBook data, European fintech funding dropped to $23.3 billion in 2022 from the previous record of $29.5 billion in 2021.
This new business offers a SaaS platform that consolidates accounting data from several sources such as Stripe, Payfit, and Qonto, saving small and medium-sized enterprises (SMEs) valuable time and energy. Pennylane has over 300 clients that use the platform to save and share documents like invoices and receipts. It also facilitates the determination of local VAT rates in each of a company’s target markets.
Pennylane now employs roughly 350 people, but CEO Arthur Waller previously told Insider the business aimed to expand to 500 people with its last fundraising round so it could become the largest accounting tech team in Europe.