Less than a year after its previous funding round, Pennylane has welcomed US fund TCV into its capital. The accounting and financial management platform is now valued at €3.5 billion.
New week, new mega funding round in French Tech. After Harmattan, a defense tech rising star, and its $200 million Series B, it is now Pennylane’s turn to raise a similar amount (€175 million), led by US fund TCV (Netflix, Airbnb, Spotify…), with participation from Blackstone Growth. On this occasion, existing investors also reinvested.
As with the previous round, this new operation was not driven by an urgent need for funding, but rather by an opportunity that arose—one that Arthur Waller, co-founder and CEO of Pennylane, deemed wise to seize. “Around last November, a few investors approached us about joining the journey. Four made offers, and two were selected to complete this round. Investors immediately bought into our long-term thesis, alongside accounting professionals,” said the head of the French accounting specialist. “We were able to complete this funding round on favorable terms. And in the current environment, it’s better to be cautious and maintain a strong cash position,” he added. This financing brings the company’s valuation to €3.5 billion, up from €2 billion previously.
Unicorn and Centaur
This new funding round comes less than a year after Pennylane’s previous raise of €75 million in April 2025, which itself took place around ten months after a €40 million round in February 2024. With such substantial cash reserves, the French company is calmly approaching the final stretch ahead of France’s electronic invoicing reform, which will come into force on September 1, 2026. “There hasn’t yet been an acceleration among very small businesses and SMEs. The reform has mainly accelerated the migration of accounting firms, which will face many day-to-day operational changes,” Arthur Waller noted. In this context, Pennylane says it tripled its number of corporate customers in 2025. To date, the fintech claims 800,000 business customers and more than 6,000 partner accounting firms.
Already elevated to unicorn status in 2024, the company also became a centaur in 2025 by generating €115 million in annual recurring revenue (ARR). This is nearly double its 2024 revenue, when Pennylane recorded €60 million in sales. This momentum is expected to continue in the coming months as the electronic invoicing reform deadline approaches in France. And good news for Pennylane: Germany is set to launch its own digital invoicing revolution in 2028. In that context, lessons learned from the French rollout could prove useful in refining the company’s approach across the Rhine.
A Third Country in the Second Half of 2026
With €290 million raised over the past two years, Pennylane enters 2026 with strong ambitions. The French fintech plans to use this fresh capital to expand its product offering—notably with the beta launch of payment terminals in February (around 1,000 companies have already pre-registered)—with the goal of becoming a true financial “Operating System” for very small businesses and SMEs. The company also plans to expand its workforce to 1,200 employees, including 600 developers, by the end of the year.
In addition, the company may be tempted to further expand internationally. “The idea is to open a third country in the second half of 2026, subject to rapid recruitment of engineers and product managers,” Arthur Waller explained. With TCV now on board, could the French company even set its sights on the US? “The United States would be premature at this stage, but never say never. Europe remains the priority,” he added.
What about external growth following the acquisition of Billy in 2024? “We’re not ruling anything out, but it’s not the objective of this funding round. That said, the market is clearly heating up, as we’ve seen with Cegid’s recent acquisition of Shine. Across from us are players with very deep pockets,” the executive noted. While waiting to one day cross the Atlantic and pursue further acquisitions, Pennylane will focus on Europe, riding the wave of digital transformation needs among very small businesses, SMEs, and accounting firms.
