French startup Swan has secured a $40 million Series B funding round, signaling the continued growth and potential of embedded banking in the European market. The funding round, led by Lakestar with participation from existing investors, demonstrates the confidence and support in Swan’s mission to build the definitive embedded banking solution for the European Union.
Key Takeaway
Swan, a French embedded banking startup, has raised $40 million in a Series B funding round led by Lakestar. The investment reflects the growth potential of embedded banking in Europe. Swan aims to differentiate itself through native features, a comprehensive API, and a localized product for European markets. The company empowers businesses to offer white-labeled banking services and has processed over €7 billion in transactions. With the funding, Swan plans to enhance its core strengths, expand payment collection methods, and explore lending capabilities. It also intends to onboard new customers in the Netherlands and Italy by introducing localized IBANs.
Expanding the Reach of Embedded Banking
While Swan is not the first embedded banking startup in Europe, it aims to differentiate itself by focusing on key pillars of success. The company is committed to developing native features to enhance the experience for both developers and end customers. Additionally, Swan offers a comprehensive API and ready-made banking interface, ensuring a seamless integration process. Perhaps most notably, the company emphasizes localizing its product for every European market, acknowledging the importance of catering to specific regional requirements.
Empowering Companies with Financial Services
Swan enables any company—whether a SaaS provider, marketplace, or fintech startup—to create payment accounts and incorporate financial products into their existing services. By partnering with Swan, these companies can offer white-labeled banking features to their customers. Notable clients include Carrefour, Pennylane, Alma, Agicap, Factorial, and Expensya.
“We take on all of the banking operations and risk for our customers, so they don’t have to worry about it and can focus on building the best product,” explained Nico Benady, co-founder and CEO of Swan.
Swan provides each payment account with an individual IBAN, allowing for localization specific to French, German, and Spanish customers. The company supports pay-ins and pay-outs, as well as SEPA direct debits, further enhancing its functionality. Regarding cards, Swan offers the generation of both virtual and physical cards compatible with Apple Pay and Google Pay. Clients have the flexibility to configure the cards according to their requirements, including maximum amounts, authorized merchants, and accepted currencies.
Continued Growth and Future Developments
Swan has served over 100 customers, facilitating over €7 billion worth of transactions. With the latest funding, the startup aims to consolidate its core competencies. Swan plans to introduce additional payment collection methods, such as direct debits and card payments. Furthermore, the company is exploring lending capabilities as a potential future offering.
To further expand its reach, Swan will introduce new local IBANs, including account numbers starting with NL and IT for the Netherlands and Italy, respectively. This strategic expansion will allow the company to onboard new customers in these European countries, promoting its mission of providing embedded banking services throughout the region.
