Swan, Paris embedded finance firm, adds €42m

Nicolas Benady, founder & CEO of Swan

Paris-based Swan, an “embedded finance” provider, said it added €42 million to its Series B funding round.

Embedded finance is a term for integrating banking and other financial services into nonfinancial apps and services.

The latest investment in Swan, led by Eight Roads Ventures, includes participation from existing investors Lakestar, Accel, Creandum, Hexa, and BPI France.

“This funding will fuel Swan’s product innovation, expand its operations across Europe, and enhance support for its rapidly growing customer base,” said Swan.

“This funding reinforces Swan’s position as Europeʼs leading embedded finance provider, positioning the company to capitalize on the market’s anticipated significant growth in the coming years.”

Founded in Paris in 2019, Swan says it enables any company 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 payments functionalities to their end-customers – making it possible to handle payments and reconciliations in a single platform,” said Swan.

Nicolas Benady, founder & CEO of Swan, said: “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.ˮ

Swan said the embedded finance sector represents one of the fastest-growing opportunities in fintech, valued at $185 billion globally, including $72 billion in Europe.

“Embedding financial products offers a significant new revenue stream for companies through interchange fees, interest income, and subscription fees while increasing end-customer retention,” said the firm.

“The timing for embedded finance adoption has never been more favourable than it is today. Advances in technology have made it easier and more productised, while rising interest rates enhance its value.”

Lucile Cornet, Partner at Eight Roads Ventures, said: “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.ˮ

Swan said this new funding will fuel growth in key European markets like Italy, further enhance Swanʼs banking solutions specifically to serve the SMB market, and accelerate the development of tailored card programs. With 85 new hires planned, Swan is solidifying its position as a major partner to cater to the banking needs of European SMBs.