Paris-based fintech unicorn Pennylane has raised €175M in a new funding round to expand its AI-driven product roadmap and strengthen its position ahead of expected consolidation in the European accounting software market.
The round was led by TCV, with participation from Blackstone Growth. Existing investors Sequoia Capital, DST Global, CapitalG, and Meritech Capital also continued their support.
Building an AI-first financial operating system
Founded in 2020, Pennylane develops a financial operating system designed for accounting firms and their SME clients across Europe. The platform centralises accounting and financial data, enabling entrepreneurs to manage invoicing, payments, expenses, cash flow, and profitability, while supporting accountants with bookkeeping and tax compliance.
The company says growth has exceeded expectations and that it is approaching profitability, allowing it to raise capital from a position of strength rather than necessity.
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Strategic funding with founder control
According to CEO and co-founder Arthur Waller, the round was driven by the opportunity to partner with long-term investors while maintaining low dilution and founder control. Pennylane stated that the new investors align with its governance principles, which prioritise founder independence, product continuity, and price stability.
The company views the funding as a way to remain fully independent while accelerating innovation and expansion across Europe.
Product expansion and regulatory readiness
The new capital will be invested primarily in research and development, including the rollout of generative AI capabilities such as an analysis assistant for accountants. Pennylane also plans to localise its product for German regulatory requirements and prepare for mandatory electronic invoicing across Europe in 2026.
Additional investment will go toward strengthening payment and cash management features within the platform.
Scale, customers, and market expansion
Pennylane is already a registered authorised platform with a live electronic invoicing solution and serves more than 6,000 accounting firms and around 800,000 client companies. The company employs roughly 1,000 people and officially entered the German market in late 2025.
With the latest funding, Pennylane aims to deepen its role as a core financial infrastructure provider for SMEs and accounting professionals across Europe.
