French fintech startup Swan has raised an additional €42 million in funding, bringing the total amount raised in its Series B round to an undisclosed figure. This latest investment, led by Eight Road Ventures, will enable Swan to continue its expansion into new markets and further develop its embedded banking services.

Swan's platform allows companies to offer financial products at scale, including virtual and physical cards that work with Apple Pay and Google Pay. These cards can be configured programmatically by Swan's corporate clients with spending limits, authorized merchants, and more. Additionally, the company can create payment accounts with individual IBANs, supporting pay-ins, pay-outs, and SEPA direct debits. These accounts can be used as the source of money for the payment cards.

The startup has already gained traction with several fast-growing companies, including Pennylane, an accounting startup that became a unicorn last year, and Indy, an all-in-one administrative assistant for freelancers. Other customers include Agicap, Factorial, Lucca, and Sesame. Swan currently works with 150 companies and processes €1.5 billion in monthly transactions.

The funding round saw participation from existing investors Lakestar, Accel, Creandum, Hexa, and Bpifrance, with Eight Road Ventures leading the second tranche. Lucile Cornet, partner at Eight Road Ventures, expressed the firm's confidence in Swan's potential, citing the immense opportunity in embedded finance and the startup's rapid progress, Tier 1 customer base, and successful international expansion.

While Swan's valuation remains undisclosed, co-founder and CEO Nicolas Benady hinted that it has increased since the previous round. "We're not a unicorn yet, so we don't mention it," he said. Notably, Swan has built its own core banking system, allowing it to offer local IBANs and add country-specific payment products, a key differentiator from other fintech startups.

For Swan's customers, the platform offers an attractive opportunity to handle money without directly managing it. Swan takes care of compliance and KYC obligations, freeing up its clients to focus on their core business. With this latest funding round, Swan plans to expand its services to more countries, with Italy being the next target on its roadmap.

The investment in Swan highlights the growing demand for embedded finance solutions, which enable companies to offer financial services directly to their customers within their existing software and workflows. As the fintech landscape continues to evolve, Swan's innovative approach and expanding customer base position it for further growth and success.