How Swan’s Major Series B Funding Fuels Embedded Banking Innovation and European Expansion
Swan’s €42 Million Series B: Powering the Next Wave of Embedded Banking in Europe
Paris-based fintech Swan has secured €42 million in Series B funding, marking a pivotal moment for the company and the broader European Banking-as-a-Service (BaaS) landscape. This fresh capital injection is set to fuel Swan’s rapid expansion across Europe, drive product innovation, and empower small and medium-sized businesses (SMEs) to access seamless, integrated financial services.
What is Swan and Why Does It Matter?
Founded in 2019, Swan specializes in embedded banking-enabling companies to integrate banking features directly into their products via APIs, without the need to become regulated financial institutions themselves. Swan’s platform handles core banking infrastructure, compliance, KYC, and fraud prevention, allowing partners to focus on delivering value to their customers.
Swan processes over €1.5 billion in monthly transactions for more than 150 companies-including Pennylane, Factorial, Agicap, Sesame, and Lucca-and operates in 30 European countries. As a principal member of Mastercard and a licensed institution regulated by the French banking authority (ACPR), Swan is well-positioned to set new standards in the BaaS sector.
The Series B Funding: Who’s Behind It and What’s Next?
The €42 million round was led by Eight Roads Ventures, with continued support from existing investors Lakestar, Accel, Creandum, Hexa, and BPI France. This funding will be used to:
- Expand Swan’s presence in new markets, including Belgium and the UK.
- Develop tailored solutions for SMEs, such as custom card programs for employee benefits, meal vouchers, travel, and expense management.
- Grow the team, with plans to hire over 80 new employees across Europe.
- Accelerate product innovation and support for a rapidly growing customer base.
Since announcing its initial Series B in September 2023, Swan has already expanded into the Netherlands and Italy, offering local IBANs and payment solutions customized for each market. The impact has been significant: monthly revenue and transaction volumes have surged by 250%, while card issuance has climbed by 370%.
Why Embedded Banking is the Future
Embedded banking is redefining how businesses and consumers interact with financial services. Instead of relying on standalone banking apps, users can now access banking features-such as payments, lending, and account management-directly within the business tools they already use, from HR platforms to accounting software.
“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,” Nicolas Benady, Founder & CEO of Swan
The Booming European BaaS Market
Swan’s growth comes at a time when the European BaaS market is experiencing explosive expansion. The Western European BaaS platform market is projected to reach $1.1 billion in 2025, with a compound annual growth rate (CAGR) of 11.6% through 2035. In 2025, BaaS platforms are expected to command a 42% market share in the region, reflecting strong demand from both fintech firms and traditional banks seeking to offer flexible, scalable financial services.
The broader European BaaS market is valued at $1.67 billion in 2024 and is forecast to grow at a remarkable CAGR of 26.5% through 2031, driven by open banking regulations, digital transformation, and the proliferation of neobanks and fintech products. The UK, Germany, and France are leading the charge, with businesses and consumers increasingly seeking seamless, API-driven financial solutions.
Real-World Impact: How Swan’s Platform is Used
Swan’s technology is already embedded in a variety of business platforms, enabling:
- Accounting software providers like Pennylane to offer banking and payments directly within their platforms.
- Freelancer platforms such as Indy to provide integrated accounts and payment functionalities for their users.
- SMEs to manage employee expenses, travel, and benefits with custom card programs and localized payment solutions.
By offering local IBANs and payment solutions tailored to each European market, Swan is removing barriers and building trust, making embedded banking as intuitive as possible for businesses and their customers.
The Road Ahead: Innovation, Expansion, and Opportunity
With its latest funding, Swan is poised to:
- Launch in new European markets, focusing on localization and regulatory compliance.
- Expand its product suite to address the unique needs of SMEs, a segment often underserved by traditional banks.
- Continue hiring top talent to support its ambitious growth trajectory.
As embedded banking becomes the new norm, Swan’s vision is to make these services expected, intuitive, and accessible to all businesses across Europe.
Swan’s €42 million Series B funding is more than a financial milestone-it’s a testament to the growing importance of embedded banking in Europe’s digital economy. By simplifying access to banking services for businesses of all sizes, Swan is not only strengthening its own position but also helping to shape the future of finance across the continent.
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