Formance Secures $21 Million in Series A Funding Co-led by PayPal Ventures
Deal News | Jan 29, 2025 | Portage Invest
Formance, an Open Source financial infrastructure provider, has successfully closed a $21 million Series A funding round co-led by PayPal Ventures and Portage Ventures. The round also saw participation from Y Combinator, Hoxton Ventures, and Axeleo Capital. Formance experienced a tenfold increase in revenue over the past year, marking its rapid growth since its founding in 2021 by Clément Salan and Anne-Sybille Pradelles. The company offers a programmable ledger, a transactional database for financial transactions, aimed at overcoming the complexities of building financial infrastructure. Formance's client base includes notable companies such as Doctolib, Liberis, Booksy, and Btech. The new funding will enable Formance to expand its operations in the US and Europe and transform its Open Source ledger into a comprehensive platform for financial features.
Sectors
- Financial Technology (FinTech)
- Venture Capital
- Software Development
Geography
- United States – Formance's expansion plans include growing its presence in the US, and PayPal Ventures, a US-based investor, is involved.
- Europe – Formance, with operations and a headquarters reported in Paris, is planning to expand further across Europe.
- France – Formance's headquarters mention Paris, which is in France, indicating a key geographic location.
Industry
- Financial Technology (FinTech) – The article discusses Formance, a company providing open-source financial infrastructure, which is a key area of development within the fintech industry.
- Venture Capital – The article covers a funding event, specifically a Series A round, which is a typical focus of the venture capital industry.
- Software Development – Formance's platform is a programmable ledger that falls under software development, particularly focusing on financial applications.
Financials
- $21 million – The Series A funding amount raised by Formance.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Formance | Target company | Company | An Open Source financial infrastructure provider founded by Clément Salan and Anne-Sybille Pradelles. |
| Portage Ventures | Bidding company | Private Equity | A private equity firm that co-led the Series A funding round for Formance. |
| PayPal Ventures | Bidding company | Venture Capital | The venture capital arm of PayPal that co-led the Series A funding round for Formance. |
| Y Combinator | Other investor | Venture Capital | A startup accelerator that participated in the Series A funding round for Formance. |
| Hoxton Ventures | Other investor | Venture Capital | A European venture capital firm that participated in the Series A funding round for Formance. |
| Axeleo Capital | Other investor | Venture Capital | A venture capital firm that participated in the Series A funding round for Formance. |
| Doctolib | Customer | Company | One of Formance's customers, using the company's financial infrastructure for their ERP system. |
| Liberis | Customer | Company | A customer of Formance, leveraging its platform for financial product development. |
| Booksy | Customer | Company | A client of Formance, benefiting from its scalable financial solutions. |
| Btech | Customer | Company | Another customer of Formance, utilizing their open-source financial infrastructure. |