Formance raises $21M to build the AWS for fintech infrastructure

When discussing their business, fintech entrepreneurs often mention ledger issues as a key point of concern. A ledger serves as the record of money movements, acting as the source of truth for financial assets. However, managing multiple bank accounts, payment processors, and funds across various services can become challenging. Many companies resort to building their own ledgers to address this complexity.

Formance, a French startup, initially focused on providing an open-source financial ledger solution to address this need. Their product has now evolved into a comprehensive platform that includes modules such as reconciliation, connectivity, and orchestration of payments.

The company recently secured a $21 million Series A funding round led by PayPal Ventures and Portage, with continued support from existing investors Y Combinator, Hoxton Ventures, and Axeleo.

A platform play

Formance aims to offer a modular platform similar to Amazon Web Services, enabling customers to streamline their financial operations under one roof. The startup plans to release additional modules for financial operations, improve connectivity, and delve into banking at a deeper level.

By focusing on a platform approach, Formance aims to reduce integration costs for clients and provide a scalable solution for their financial infrastructure needs.

With plans to expand their operations to the U.S and increase their headcount, Formance is poised for growth and innovation in the fintech industry.