Swan, a Paris-based fintech company, has successfully raised €42 million in a Series B funding round led by Eight Roads Ventures, with participation from existing investors including Lakestar, Accel, Creandum, Hexa, and BPI France.

The newly acquired capital will be directed towards product innovation, expanding operations in Europe, and improving customer acquisition and retention strategies.

Swan plans to use this funding to further its expansion into new countries, with Italy next on its roadmap.

In addition to expansion, Swan aims to hire 85 new employees to bolster its position in the embedded finance sector and support its growing customer base across Europe.

Currently, Swan collaborates with over 150 companies and processes approximately €1.5 billion in transactions each month, serving notable clients like Pennylane and Indy.

Swan manages compliance, KYC, and risk management for its clients, allowing them to focus on their core business activities while operating in 30 European countries.

Clients such as accounting software provider Pennylane and freelancer platform Indy leverage Swan's services to offer integrated banking functionalities to their customers.

The embedded banking model provides companies with new revenue streams through interchange fees, interest income, and subscription fees, while also enhancing customer retention.

Since its last funding round, Swan has experienced remarkable growth, with a 250% increase in monthly revenue and transaction volumes, and a 370% rise in the number of cards issued.

Lucile Cornet from Eight Roads Ventures emphasized the significant potential of embedded finance and praised Swan's rapid growth and successful international expansion.

Nicolas Benady, the founder and CEO of Swan, envisions a future where business management software seamlessly integrates banking services, enhancing user experience and accessibility.

Swan distinguishes itself with a self-built core banking system that allows it to offer localized services, including individual IBANs and tailored payment solutions, setting it apart from many fintech startups.