French startup Swan has succeeded in raising an additional €42 million, around $44 million at current exchange rates. This round is a continuation of their Series B funding, initially announced in September 2024.
Swan supports businesses in delivering large-scale financial services. They offer both virtual and physical cards that can be easily integrated with Apple Pay and Google Pay. These cards are customisable, allowing clients to set spending limits and specify approved merchants, among other features.
In addition, Swan can create payment accounts with unique IBANs, enabling a range of transactions like pay-ins, pay-outs, and SEPA direct debits. These accounts can also function as the funding source for payment cards.
Many fast-growing businesses have chosen Swan for embedded banking solutions. For instance, French accounting startup Pennylane, which reached unicorn status last year, offers accounts and payment cards to its clients, utilizing Swan for these services.
Similarly, Indy, a comprehensive administrative tool for freelancers, enhanced its offerings with accounts and cards through Swan. Other distinguished partners include Agicap, Factorial, Lucca, and Sesame.
Overall, Swan partners with 150 companies and handles €1.5 billion in monthly transactions.
The funding round is led by Eight Road Ventures with participation from returning investors such as Lakestar, Accel, Creandum, Hexa, and Bpifrance, which had initially invested in Swan’s seed round through its Digital Venture fund.
“The embedded finance market is brimming with potential, as banking services are increasingly integrated where users already interact, within their existing software and workflows. Our connection with Nicolas and his team dates back to their early days, and we have consistently found their rapid advancement, esteemed client base, and international success to be impressive,” expressed Lucile Cornet, a partner at Eight Roads Ventures.
Although Swan has not revealed its valuation, its co-founder and CEO, Nicolas Benady, noted to techcrunch that it exceeds previous figures. “We haven’t reached unicorn status yet, so we’re not discussing it,” he said.
While many fintech enterprises build solutions on top of other fintech APIs and platforms, Swan has developed its own core banking system, providing local IBANs and tailoring payment products to each country’s specific needs.
For Swan’s customers, the capability to manage funds without directly handling money is highly attractive. Swan manages compliance and KYC (know your customer) duties. Following the latest funding round on Thursday, Swan has plans to expand further into new countries, with Italy being next on the roadmap.