Formance secures $21m Series A funding as PayPal Ventures backs Open source financial infrastructure
Formance, a leading provider of Open Source financial infrastructure, has successfully raised $21 million in Series A funding, marking a major milestone in its mission to transform financial transaction management. The funding round was co-led by PayPal Ventures and Portage Ventures, with additional participation from Y Combinator, Hoxton Ventures, and Axeleo Capital.
This investment follows a tenfold increase in Formance’s revenue over the past year, highlighting the growing demand for programmable financial infrastructure that enables businesses to develop and manage custom financial workflows with greater flexibility and efficiency.
Why is Open Source financial infrastructure gaining traction in fintech?
As digital payments and embedded finance continue to evolve, financial technology providers face increasing challenges in building scalable, secure, and customisable financial solutions. Traditional financial infrastructure is often vendor-locked, requiring significant resources to integrate, maintain, and scale.
Formance addresses these limitations by offering a programmable, Open Source financial platform that allows fintech startups, SaaS providers, and financial institutions to seamlessly orchestrate money flows without the complexity of legacy systems.
According to Anne-Sybille Pradelles, co-founder of Formance, the company’s mission is to empower developers with a financial technology foundation that prioritises control, transparency, and adaptability.
“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,” said Pradelles.
How does Formance’s programmable ledger transform financial transaction management?
At the core of Formance’s financial technology stack is its programmable ledger, a transactional database that offers real-time reconciliation, scalability, and full visibility into financial transactions. Unlike traditional accounting systems, Formance’s ledger is designed for developer-first integration, enabling companies to automate complex money movements with ease.
“Formance enabled us to ship new lending products faster by providing a customisable foundation that let us reliably express the complexities of our flow of funds and domain specifics,” said Tito Sarrionandia, VP of Engineering at Liberis.
Key features of Formance’s programmable financial infrastructure include:
- Vendor-agnostic compatibility, allowing businesses to integrate with any financial service provider.
- Open Source flexibility, enabling full ownership and control over financial workflows.
- Scalability and security, meeting the compliance needs of regulated financial entities.
By leveraging Open Source financial tools, businesses can reduce dependency on proprietary solutions, accelerate product development, and enhance financial transaction management across global markets.
Who is adopting Formance’s financial infrastructure?
Formance’s financial technology solutions are gaining traction among fintech companies, SaaS platforms, and enterprise financial institutions. Customers such as Liberis, Booksy, Btech, and Doctolib rely on Formance’s programmable ledger to enhance their financial operations, from lending automation to ERP financial management.
“Formance is the foundation of our financial OS, enabling us to build new financial products for practitioners using Doctolib ERP. This would not have been possible without the Open Source approach, which enables us to retain control and ownership over this key component,” said Ludovic Quintard, Senior Engineering Manager at Doctolib.
What’s next for Formance after securing $21 million in Series A funding?
With the latest funding, Formance plans to expand its presence in the US and European fintech markets, further develop its Open Source ledger, and introduce new programmable financial infrastructure solutions. The company is focused on enhancing its developer toolkit, making it even easier for businesses to integrate financial automation into their platforms.
As Open Source financial infrastructure continues to gain traction, Formance is positioned as a leader in enabling scalable, efficient, and transparent financial transaction management. With backing from PayPal Ventures and other top-tier investors, the company is set to redefine how businesses interact with digital money flows.
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