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Pennylane wants to overhaul the accounting tech stack in France – TechCrunch

French startup Penny Lane We have raised $ 57 million in Series B rounds (€ 50 million) from existing investors such as Sequoia Capital, Global Founders Capital and Pirtek. The startup wants to replace traditional accounting solutions in France and Europe.

If you are an accountant, you may be familiar with tools like Cegid and Sage. Basically, Penny Lane wants to overhaul these tools and modernize the accounting firm’s technology stack.

Pennylane connects directly to third-party services that hold valuable information. For example, you can get bank statements from the Pennylane interface, import receipts from Dropbox, and get billing information from Stripe.

Also, because it is an online platform, accounting firms can share Pennylane. Clients can also access the platform to centralize receipts, create invoices, and automate some tasks. Instead of exchanging information using spreadsheets and photo attachments, both clients and accounting firms can interact directly on the platform.

Currently, there are 300 accounting firms using Penny Lane. Some have started using the product with some clients, while others have switched to a completely new tool. Interestingly, Penny Lane’s clients want to use the platform more and more. In other words, introduce a new client to the platform.

“Nine months ago, 90% of our clients contacted us directly and 10% became clients through an accounting firm. Nine months later, that trend changed. 81% of our clients were accounting. I’m from the office, “co-founder and CEO Arthur Waller told me.

Startups didn’t want to share revenue figures, but Waller told me that startups have grown 20% month-on-month since this summer. Since 2020, Penny Lane has raised $ 96 million.

Taking a step back, Penny Lane has great market opportunities. In the UK, US, and other more mature markets, companies use software solutions as QuickBooks, Xero, and other services. However, accounting is a fragmented industry, with countries using their own software solutions. In some countries, such as France, there is no definitive SaaS solution for accounting.

“There are about 12,000 accounting firms in France. Today we work with 300 people,” Waller said. “Our goal is to work with 1.5 million SMEs in four to five years,” he added.

There are several opportunities for geographic expansion in the future, but there are also some product opportunities. Penny Lane has the potential to be a central hub for everything related to financial management.

For example, the company has begun beta testing of corporate cards. swan To make payment easier. You can imagine a kind of revenue sharing transaction with an accounting firm for the exchange fees generated by these corporate cards. With today’s funding, there’s still a lot to do just for the French market, so the company believes it can repeat its products.

The company expects to reach 500 employees by the end of the year. Penny Lane considers technology and products to remain the most important areas for startups, so most employers fall into these categories. Basically, Pennylanes wants to create a product that is easy for new accountants to get started with.

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