Pennylane, a startup offering accounting software based in France, has secured another $43 million, pushing its valuation past the $1 billion mark and making it France’s latest unicorn. Pennylane’s growth has been rapid, securing $4 million in 2020, $30 million in 2021, and $80 million in 2022 and 2023 combined.
The startup serves more than 2000 accounting firms, making it their main software tool. Despite some clients using Pennylane directly, the majority of the client-base is through these accounting firms. Because of this, over 120,000 small and medium companies depend on Pennylane for their accounting needs in France, and the user base has increased 40x in two years.
While Pennylane co-founder and CEO Arthur Waller acknowledged they cannot replace ERP software like SAP, he considers it a very effective alternative as an accounting and finance tool. The new funding round saw existing investors Sequoia Capital and DST Global upping their stake in the startup.
In addition to its impressive growth, Pennylane has also been steadily incorporating new features to its software. The platform integrates with third-party services for data such as banking statements or billing information. Combining these sources with their in-house OCR technology enables them to minimize data entry, saving users time.
Adding to its offering, Pennylane has launched fintech products like integrated professional banking and payment cards. Waller stated that while users are not required to bank with Pennylane, 20% of their customers do. Particularly with other fintech companies expanding in finance and accounting management, it’s important for them to provide a comprehensive product.
Artificial intelligence has been integrated into Pennylane’s platform in two ways, to help find pertinent information in the data and aid accountants with complex cases. With no pressing financial issues, Pennylane plans on becoming profitable within the next 12 to 18 months.
Source: Accounting software startup Pennylane becomes France’s latest unicorn }}.
