Formance raises $21M to build the AWS for fintech infrastructure

If you talk about their business with a fintech entrepreneur, it is likely that they will talk about laser problems at any stage.

An account is a record of the Money Movement that serves as the source of the truth for financial resources, but when a company has multiple bank accounts, payment processors and funds spread to separate services, it can become a headache to manage it. Most companies dedicate engineering resources to create their own lasers to solve it.

The French startup formation begins to try to capitalize on this need with an open source, programmable financial laser, which can track all the resources that go out and out of your accounts. Now, the product is serving as a spine for playing a more wide, more ambitious infrastructure.

“In 2021 and before, we have mainly focused on the account. And then we started to be prepared to move to the formance platform from a single account to the other module – the reunion, for example, the connecting of the payment service, etc. “Co -founder and Center Salaman Techchen.

Formans currently provide five products: In addition to the account, there is a connection platform to integrate financial suppliers using a single API; Orchestrates to pay for the money to move money between wallets and payment suppliers; And reunion.

Startup is also working on a mass repayment products for marketplaces and other companies that require payment. Developers can already handle the payments by using stripes, aden or mangpees, but the formulation wants to create a middleware that works all over several suppliers.

The company has recently been co-operated in a round of $ 21 million series PayPal initiative And PorterThe Existing investors are participating in Wi -Combinator, Hostton Ventures and Axelio.

A platform game

Startup believes that a modular platform is worth offered with cloud hosting with Amazon Web Services: Customers can use a single service, but if you put all your cloud infrastructure under the same roof, this is even more efficient.

“We will publish a number of other modules, especially related to financial activities,” said Salan. “We’re going to go further with export for accounting equipment. We are going to improve the connection one step forward and go to the bottom of the stack and work in banking at the lower level. So we really are about to modularize the whole stack ””

At the same time, the team wants to ensure that integration costs for their clients are as low as possible if they want to add another module.

“If you get three sass products to manage them, you are going to spend, I don’t know, $ 150,000 on three products and $ 150,000 in the internal eighth to link them together, said Salan.” “Financial infrastructure is truly a ‘long tail of a small problem’, each of which is a company with $ 10 million [annual recurring revenue] – Something like that. But it’s really the game of this platform that can help us make more scales than “”

Greater fintech companies like Stripe also provide many fintech infrastructure services but the formulation wants to remain independent. It does not process the payment and it does not keep the clients the meaning of themselves.

The company claims that it has about 20 customers, of which two are in the United States – according to Salahan, the two customers represent 40% of startup revenue. Other clients include Booksi, Doctolib, Liberis and Shares.

The bank is planning to open an office in New York, including the new $ 21 million, and appoint a go-market team there. It wants to adjust its engineering and product teams to increase the 20 to 50 employees from the end of 2025.