Pennylane raises $57 million (€50 million) in Series B funding from existing investors Sequoia Capital, Global Founders Capital and Partech
January 31st, 2022
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Pennylane will become the only platform that combines a complete software solution for accountants and a financial management tool for VSEs/SMEs.
● With $96 million raised since its launch in 2020, Pennylane is focused on development of its platform. The company plans to reach 500 employees by the end of the year and create the largest technical team - 275 people - in the account tech industry in Europe.
● With 180 employees across 20 nationalities, Pennylane will aim to hire more than 200 additional team members from across Europe in Tech, Data, Design and Product.
● In just two years, thousands of companies and several hundred French accounting firms have adopted Pennylane - an achievement that prompted Sequoia to invest in the startup again, just seven months after its initial round.
● Pennylane's ambition is to become the leading financial OS on the European market: to enable thousands of small businesses to centralize their financial management in a single tool. Pennylane will start its European expansion in 2023 by entering Spain and Germany.
Since its last round of funding Pennylane has seen incredible progress. Over the past few months it has built and delivered a unique solution to the market: a platform that combines a complete software solution for accountants and a real management and decision-making tool for company managers. Pennylane also provides small and medium-sized businesses with the ability to manage their cash flow, pay their clients, use numerous integrations, and exchange information with their accountant in real time.
Creating Europe's largest technical team in the industry by the end of 2022
Pennylane's success is driven by its ability to innovate incredibly fast, with the help of a 75 person strong Tech and Product team. Throughout 2022, they hope to grow this by 200 employees across development, data and product. To drive this recruitment effort they have a 15 person talent team and crucially they operate as remote-first throughout Europe for their technical team. With almost half of the developers recruited in 2021 located in Spain, Germany or Romania, Pennylane has developed a highly successful remote-first working culture.
Arthur Waller, CEO and co-founder of Pennylane: "This new funding round comes at a pivotal point in our growth. We have all the elements to significantly scale up and to continue to develop the best accounting tool on the market. We’re also really proud of our remote-first culture and are excited to grow our team and recruit the most talented people across tech and data regardless of where they are".
"We are proud to once again support Pennylane in its growth, a company that has developed the most advanced tool on the market to support accountants and managers on a daily basis. From day one, we have been impressed by the speed of execution of the co-founders and their team, enabling them to position themselves as the European gem of Accountech," adds David Sainteff, Partner at Global Founders Capital.
Pennylane’s exponential growth is driven by the fact that both SME’s and accountants love the product. This means not only is it’s volume of direct customers growing (up 98% in 6 months) but accountants are recommending the platform to their clients and vice versa - creating a virtuous cycle. In fact, over the past 6 months the number of companies using Pennylane on the recommendation of their accountants has increased from 22% to 81%!
“In a very short time, Pennylane has seen remarkable traction with accountancy firms and SMEs in France, as they solve the financial and accounting pain points across these two markets. We’re continuously impressed by the vision of the founders, their ability to execute on product and the spectacular growth of the company." said Luciana Lixandru, Partner at Sequoia. "We’re proud to carry on this adventure with Pennylane, as they build the go-to financial operating system for accountants and small businesses across Europe”
Pennylane, a French fintech created in 2020, is the first financial and accounting management platform designed for SMEs and their accountants. The startup has developed a platform that combines a complete production software for accountants and a financial management tool for their clients. By offering them a shared tool, Pennylane allows accountants to spend less time processing data and more time analysing it, and their executive clients to spend less time on administrative management while having all the tools they need to better manage their business. Pennylane enables accountants and managers to make the best decisions for their businesses together.
Pennylane supports several thousand companies and has become the daily production tool for more than 1,000 accounting professionals.
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