Formance, an Open Source financial infrastructure provider, announced the close of a $21 million Series A funding round co-led by PayPal Ventures and Portage, with participation from Y Combinator, Hoxton Ventures, and AXC.
This latest milestone reportedly comes on the heels of a “10x increase” in Formance’s revenue over the past 12 months.
Established back in 2021 by Clément Salaün, former payments lead at Selency, and Anne-Sybille Pradelles, ex-COO of cybersecurity startup Alsid, Formance is transforming how developers build financial flows and products.
Its core offering is a programmable Ledger — a transactional database that provides detailed “visibility into every transaction, and streamline reconciliation, with any type of financial partner.”
Historically, building financial infrastructure has been a monumental challenge, requiring extensive “engineering, accounting, and compliance expertise.” Fintechs and other digital platforms are now attempting make more efficient use of resources and provide more seamless solutions that do not come with high maintenance and operational costs.
Reportedly led by a fintech team from global Fintech Klarna, FIS, Solaris, and Cockroach DB, Formance simplifies this by providing “an Open Source, programmable, and vendor-agnostic solution, allowing companies to move faster with fewer resources.” These types of solutions are being widely adopted with an emphasis on open-source which allows everyone to learn and benefit from the latest technological innovations.
Tito Sarrionandia, VP of Engineering at Liberis said:
“Formance enabled us to ship new lending products faster by providing a customizable foundation that let us reliably express the complexities of our flow of funds and domain specifics.”
Formance serves global customers, including large-scale vertical SaaS )(software as a service) platforms, fintech firms, as well as financial institutions – such “as Liberis, Booksy, and Btech – which require high levels of scalability, security, and customizability.”
Anne-Sybille Pradelles, Formance co-founder, said:
“This new funding will fuel Formance’s expansion across the US and Europe and accelerate its vision of transforming its Open Source Ledger into a full-scale platform for building and managing sophisticated financial features.”
