Physical Address
304 North Cardinal St.
Dorchester Center, MA 02124
Secan Mongkhonkhambassao | Moment Ghetto images
French accounting software Pennylane has doubled its estimate to 2 billion euros ($ 2.16 billion) in a new round of 75 million euros.
Pennylane told CNBC that he has raised fresh funds from multiple risk funds, with Sequoia Capital leading the circle and Capitalg, Meritech and DST Global also participating.
Founded in 2020, Pennylane sells what he calls “everything in one” accounting platform used by accountants and other financial specialists.
The platform is focused mainly on small to medium -sized companies, offering tools for functions, cost, billing, cash flow management and financial forecasts.
“We came into adaptation of a product that looks a bit like (Intuition) QuickBooks or Xero But its adaptation to the needs of continental accountants, starting from France, “said Pennylane’s CEO and co -founder Arthur Waller before CNBC.
Pennylane currently serves about 4,500 accounting companies and more than 350,000 small and medium -sized enterprises. The launch was previously estimated at € 1 billion in the 2024 investment round.
European expansion
So far, Penil works only in France. However, after the new fundraising, the launch now plans to expand its services across Europe – starting from Germany in the summer.
“It will be a lot of work. It took us approximately five years to have a product mature in France,” Waller said, adding that he hoped to reach the product maturity in Germany for a later period of two years.
Pennylane plans to end the year of about 100 million euros annual repetitive revenue – a measure of annual revenue generated by subscriptions that are renewed every year.
“We will get smoothly until the end of the year,” Waller said, adding that Pennylane is working at lower costs to acquire clients from other Fintechs. “75% of our expenses are R&D (research and development),” he added.
Penil also plans to strengthen the rent after the new funding round. He is looking to grow to 800 employees by the end of 2025, compared to 550 currently.
Copilot for accountants
Like many other Fintech, penile perceives artificial intelligence. Waller said the launch uses technology to help customers automate accounting and free time for other things such as consultative services.
“Because we have a modern technological stack, we are able to embed all kinds of AI in the product, but also Genai,” Waller told CNBC. “We are really trying to build a pilot for the accountant.”
He added that the new e -invoicing rules that come into force across Europe are pushing more and more companies to consider new digital products to serve their accounting needs.
“Every business in France within one year will have to choose a product operator to issue and receive invoices,” Waller said, calling an electronic invoice in a huge market.
Luciana Lixandru, a partner in the sequoia, who sits on the penal board, said the reforms represent a “large -scale market opportunity” as the accounting industry is still catching up with the digitalization.
“The reality is that the market is very fragmented,” Lixandru told CNBC by email. “There are one or two decades in each country and few options that serve both SMB and their accountants.”
