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Embedded finance has been a hot topic in the fintech world, promising to seamlessly integrate financial services into other products. Swan, a French startup, is making waves in this arena by securing a whopping €37 Million in their Series B funding round (approximately $40M USD). This move not only signifies a major win for the French tech ecosystem but also underscores the potential and demand for embedded banking solutions in the European Union.
The Rise of Embedded Banking
Embedded finance aims to bring financial services closer to other products, ensuring a smooth experience for end-users. Swan’s recent funding success highlights the growing interest and investment in this sector. While there are other players in the market, such as Solaris, Treezor, Adyen, and Stripe, Swan’s approach sets it apart.
Meet Swan’s founders: Nicolas Saison, Nicolas Benady and Mathieu Breton
Swan’s Unique Approach
Swan believes in focusing on a few core principles to outshine its competitors:
- Native Features: Swan emphasizes building as many native features as possible to enhance the experience for both developers and end-users.
- Versatility: The startup offers both a ready-made banking interface and a comprehensive API.
- Localization: Swan is dedicated to tailoring its product for every European market, ensuring a more personalized user experience.
Investors Show Confidence
Lakestar spearheaded the recent funding round, with Swan’s previous investors, including Accel, Creandum, and Bpifrance, also contributing. Accel had previously led Swan’s Series A round in 2021, and the startup was initially a part of the eFounders startup studio.
Swan’s Vision: Empowering Companies
Swan’s primary proposition is empowering any company to create payment accounts and introduce financial products into their existing services. By partnering with SaaS companies, marketplaces, and other fintech startups, Swan facilitates white-labeled banking features. This approach allows businesses to focus on refining their products while Swan handles the banking operations and associated risks.
Expanding Services and Reach
Swan is not resting on its laurels. With the fresh funding, the company plans to:
- Introduce more payment collection methods, including direct debits and card payments.
- Explore lending capabilities.
- Launch local IBANs for countries like the Netherlands and Italy, aiming to attract customers from these regions.
In conclusion, Swan’s recent funding success and its innovative approach to embedded banking signal a promising future for the startup and the broader embedded finance sector in Europe.
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