Swan Raises €42 Million to Expand Embedded finance Services in Europe
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Paris-based embedded finance provider, Swan, has secured €42 million in its Series B funding round, according to a recent announcement. This funding,led by Eight Roads Ventures,also saw participation from existing investors Lakestar,Accel,Creandum,hexa,and BPI France. Swan plans to leverage this influx of capital to accelerate its European expansion and develop innovative new products in the embedded finance space.
Swan empowers businesses to offer financial services to their customers without needing to become regulated financial institutions themselves. they currently partner with over 150 companies across 30 European countries, facilitating €1.5 billion in monthly transactions. Notable clients include accounting software provider Pennylane and freelancer platform Indy. These collaborations allow businesses to seamlessly integrate financial functionalities like accounts and payments directly into their existing workflows, simplifying processes like payments and reconciliations.
Swan’s CEO,Nicolas Benady,envisions a future where business management software becomes a primary distributor of banking services. He highlights this concept as “embedded banking,” stating, “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.”
This vision aligns with Swan’s strategic position in the rapidly evolving embedded finance market. This sector is projected to reach €177 billion globally, with €69 billion of that value residing in Europe, according to swan. Predictions suggest that embedding financial products offers important new revenue streams for businesses through interchange fees, interest income, and subscription fees while simultaneously increasing customer retention.
Lucile Cornet, Partner at Eight Roads ventures, underscores the immense potential of embedded finance, stating, “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 triumphant international expansion.”
Swan differentiates itself from its competitors through several key features. These include a self-built core banking system, localized offerings, highly productized solutions, and a unique regulatory framework. By fully owning its core infrastructure, Swan maintains complete control over its product roadmap, enabling the progress of elegant and advanced banking functionalities. Swan’s regulatory model also minimizes the burden on its clients, allowing them to focus solely on their business operations while Swan handles compliance, KYC, and risk management. Furthermore, Swan’s local IBANs and country-specific payment solutions enhance trust and usability for users.
Looking ahead, Swan is dedicated to scaling its operations to provide even better support to its partners. This includes offering comprehensive assistance throughout the project lifecycle, from conception to go-live and beyond. The company is notably focused on serving the needs of small and medium-sized businesses (SMBs). Swan has already witnessed remarkable growth, reporting a 250% increase in monthly revenue and transaction volumes as its last funding round, along with a 370% surge in the number of cards issued.
The new funding will be instrumental in driving expansion in key european markets such as Italy, enhancing Swan’s banking solutions to better serve the SMB market, and accelerating the development of specialized card programs. With plans to hire 85 new employees, Swan is poised to solidify its position as a leading partner in providing comprehensive banking solutions to European SMBs.
What are Swan’s top priorities for the investment the company recently secured?
Swan’s Nicolas Benady on Embedded Banking and the Future of Finance
Nicolas Benady, CEO of Swan, reflects on the rise of embedded finance and how his company is empowering businesses to integrate financial services seamlessly into their workflows.
Interview with Nicolas Benady, CEO of Swan
Archyde: Nicolas, thank you for joining us. Europe is seeing a surge in embedded finance. Could you tell us about Swan’s role in this exciting space?
Nicolas Benady: Thanks for having me.At Swan,we’re at the forefront of this revolution. We provide the technology and infrastructure that allow businesses to offer financial services to their customers without becoming regulated financial institutions themselves. Think of it as bringing banking right into the heart of a company’s existing software and workflows.
Archyde: can you give us a specific example of how Swan’s technology is transforming the customer experience?
Nicolas Benady: Take the example of an accounting software provider like Pennylane. Through our partnership, they can now offer their clients integrated payment gateways, expense management tools, and even accounts directly within their existing platform. This removes the friction of switching between different applications and streamlines the entire financial process for their users.
Archyde: The market research is compelling, suggesting embedded finance will become a dominant force. What’s your vision for the future of finance in this context?
Nicolas Benady: I truly believe business management software will become the primary distributor of banking services. Imagine being able to manage your accounts, pay bills, or even apply for loans, all without ever leaving your accounting, HR, or project management tools. That’s the future we’re striving for at Swan—a future where financial services are seamlessly integrated into every aspect of a business’s operations.
Archyde: It’s a bold vision.What are the biggest challenges Swan is tackling to bring this vision to life?
nicolas Benady: It’s a complex landscape. We’re constantly working to make our technology more accessible, build robust local compliance programs across multiple European markets, and ensure the seamless integration with our partners’ existing systems. But the increasing demand for embedded finance solutions tells us we’re on the right track.
Archyde: swan recently secured substantial funding, which you mentioned is key to driving expansion.What are your top priorities for this investment?
Nicolas Benady: We’re focused on three key areas: scaling our platform to handle the growing demand, further innovating our product offerings to better serve the needs of SMEs, and expanding our footprint into key European markets like Italy. we believe this will empower more businesses to leverage the power of embedded finance and solidify Swan’s position as a leading provider in the industry.
Archyde: For our readers who are still unfamiliar with embedded finance, what’s your biggest piece of advice for businesses considering its implementation?
Nicolas Benady: Don’t underestimate the potential to enhance your customer experience and create new revenue streams. Embedded finance can be a game-changer, but it’s essential to find the right partner, like Swan, that understands your unique needs and can seamlessly integrate the technology into your existing ecosystem.
