• A French fintech, Swan raises €42M ($44M) in a Series B extension led by Eight Roads Ventures.
  • The company processes €1.5B in monthly transactions across 150 corporate clients.
  • Their plans to expand include entry into the Italian market and enhanced banking infrastructure.

A French embedded banking startup, Swan, has announced a €42 million ($44 million) extension to its Series B funding round, strengthening its position in the European banking-as-a-service market.

The new investment, led by Eight Roads Ventures, includes participation from existing investors Lakestar, Accel, Creandum, Hexa, and Bpifrance.

The company has established itself as a crucial infrastructure provider for businesses looking to integrate financial services into their platforms.

Swan's technology enables companies to offer both virtual and physical payment cards that are compatible with Apple Pay and Google Pay, along with payment accounts featuring individual IBANs that support various transaction types including SEPA direct debits.

The startup's success is evident in its impressive client roster, which includes recent French unicorn Pennylane and prominent companies like Indy, Agicap, Factorial, and Lucca.

Currently, Swan processes €1.5 billion in monthly transactions across its network of 150 corporate clients.

"We believe the embedded finance opportunity is immense, and that banking services will increasingly be offered directly where users are," stated Lucile Cornet, Eight Roads Ventures partner, as he highlighted the strategic importance of Swan's position in the market.

While not yet reaching unicorn status, CEO Nicolas Benady confirmed the company's valuation has increased with this round.

Swan distinguishes itself by operating its core banking system, enabling the provision of local IBANs and country-specific payment products – a significant advantage over competitors relying on third-party APIs.

The fresh capital will fuel Swan's geographic expansion, with Italy marked as the next target market.

The company will continue to handle crucial compliance and KYC requirements for its clients, making it easier for businesses to integrate financial services without managing direct banking operations.

Edited By Annette George