Embedded fintech Swan extends Series B with €42M

Parisian fintech Swan, an embedded finance platform, has added €42 million to its Series B funding round. The investment, led by Eight Roads Ventures, includes participation from existing investors Lakestar, Accel, Creandum, Hexa, and BPI France.

This investment will be used for product innovation, expansion across Europe, customer acquisition and retention. The company hopes to capitalize on the market's anticipated significant growth in the coming years.

The platform enables companies to offer financial services without becoming regulated themselves. For example, customers such as accounting software provider Pennylane or freelancer platform Indy, collaborate with Swan to offer accounts and payment functionalities to their end-customers

“In the future, I believe business management software will become a key distributor of banking services. Whether it's for HR or Accounting, these tools will offer banking features seamlessly integrated into the user's workflow. This means you'll have access to banking services right when you need them, directly in the tool you're using. We call this embedded banking. At Swan, we're working hard to provide both the technology and compliance framework to make this a reality for SMEs across Europe.” said Nicolas Benady, founder & CEO.

Embedding financial products facilitates interchange fees, interest income, and subscription fees, and rising interest rates have increased their value.

“We believe the embedded finance opportunity is immense, and that banking services will increasingly be offered directly where users are, within existing software and workflows. We've known Nicolas and his team since their early days and have been consistently impressed by their rapid progress, Tier 1 customer base, and successful international expansion.” said Lucile Cornet, Partner at Eight Roads Ventures.

Swan’s regulatory model removes the burden of direct regulatory relationships, enabling customers to focus exclusively on their commercial activities while Swan handles compliance, KYC, and risk management. It currently operates in 30 European countries.