Formance Secures $21 Million In Series A To Expand Financial Solutions
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Formance, a company that provides open-source financial tools, has received $21 million in a Series A funding round. The company plans to use this money to grow its Ledger and other solutions that help developers create financial systems and products.
PayPal Ventures and Portage led the funding round. Formance shared that its revenue grew ten times over the past 12 months.
Formance Enhances Financial Tools For Faster And Flexible Solutions
In December, PayPal Ventures joined a funding round where Bureau, a company that fights fraud, raised $30 million. Bureau plans to use artificial intelligence to help businesses stop complex fraud attempts.
In September, PayPal Ventures announced an investment in Chaos Labs, a company that focuses on blockchain risk management. PayPal Ventures shared that the investment was made using PayPal’s stablecoin, PYUSD, on the blockchain.
Formance provides tools that help platforms and financial companies build modern financial applications. These tools support payments, banking, lending, investing, and insurance by handling complex fund movements.
Formance’s system allows companies to work with any financial service provider they choose. The company’s open-source and flexible tools give businesses more control and help them launch their services faster.
The Formance Platform includes four services: Ledger, Connectivity, Flows, and Reconciliation. Each service works together to create a strong and expandable financial system.
Formance Expands Financial Solutions To Support Business Growth
Anne-Sybille Pradelles, Co-Founder of Formance, explained that the new funding would help the company expand in the U.S. and Europe. She also said Formance wanted to turn its Open Source Ledger into a full platform for building and handling complex financial features.
Formance’s open-source solution is designed to help companies build financial tools faster and with fewer resources. The company shared that its main product, the programmable Ledger, gives a clear view of every transaction and helps businesses work smoothly with financial partners.
Formance’s solution is used by software companies, FinTech firms, banks, and other financial businesses worldwide.
Tito Sarrionandia, Vice President of Engineering at Liberis, said Formance helped his company launch new lending products faster. He explained that Formance’s tools provided a flexible system that handled the complex flow of funds in their business.
In June 2022, Formance raised $3.1 million in its first funding round. PayPal Ventures has also supported several other companies in recent months.
On January 16, it helped InsurTech Olé Life raise $13 million in a Series B funding round. This allowed Olé Life to expand in Latin America and introduce new insurance products.
