The French startup Pennylane has raised a new round of financing worth 18.3 million US dollars (15 million euros). Interestingly, this is Sequoia Capital’s first investment in France after announcing ambitious expansion plans in Europe.
If you’re unfamiliar with Pennylane, the startup created an accounting platform that improves bookkeeping for both clients and their accountants. The company focuses on small and medium-sized businesses and has already attracted hundreds of customers with 1,000 executives currently using Pennylane.
If you run a small business, you likely use Microsoft Excel or some other financial tool to make your financial projections. They also send all of your bills, payroll information, and more to your accountant. Essentially, you are doing the same thing twice.
Pennylane allows you to connect your account to third party services that already contain valuable information, such as Stripe, Payfit, Qonto, Zoho, Sellsy etc. The data is then regularly synchronized so that you can check outstanding invoices, pay your suppliers and see where you stand when it comes to incoming and outgoing payments.
On the other side of the equation, Pennylane works with 100 accounting firms that could do bookkeeping for you. You can ask Pennylane to put you through an accountant and they will use your Pennylane information to complete their work.
If you already have an accountant or your own in-house accounting team, you can also instruct them to create an account with Pennylane and pull accounting information from the platform. Pennylane acts as a central repository where your financial data is always up to date.
“Pennylane will become the most important financial management platform for SMEs in Europe,” said Luciana Lixandru, partner of Sequoia, in a statement. “We look forward to working with their exceptional team to ensure companies of all sizes have a single, up-to-date source for their financial data and to improve the way they work with their accountants.”
Next, the startup wants to build a “financial operating system” for European small and medium-sized companies. You can envision a marketplace of services that customers can use in addition to Pennylane’s core product.
Pennylane was on the rise when the company picked up a Series A round for $ 18.4 million just a few months ago. Global Founders Capital and Partech led Serie A in January.