Talking to a FinTech entrepreneur about your business can lead to a ledger problem at some point.
The ledger is a record of money movements that function as the source of the truth of financial assets, but if a company begins to spread multiple bank accounts, payment processors, and funds to individual services, it can be a headache to manage. I have sex. Most companies will offer engineering resources to build their own ledger to solve it.
The French startup performance has begun to take advantage of this need in an open source program book that can track all assets that enter and leave the account. Currently, the product is functioning as a backbone for a wider and more ambitious infrastructure play.
“2024, and even before, we were mainly focusing on the ledger, and we started preparing to move from a single ledger product to another module using another module. For example, the reconciliation part, the payment service, etc., and said to Ctoclémentalaün.
Formation is currently offering five products. In addition to the ledger, there is a connection platform for integrating financial providers using a single API. Adjust your payment and cross your wallet or payment provider to move money. settlement.
Startups are also working on large -scale payment products from markets and other companies that need to be paid. Developers can already manage payouts in programs using Stripe, Adyen, or Mangopay, but Formance wants to build middleware that works on several providers.
The company has recently raised a 21 million dollar series A -round, co -led by PayPal Ventures and Portage. An existing investor Y combinationator, Hokston Venture and Axel are also participating.
Platform play
Startups believe that providing a modular platform similar to Amazon Web services is valuable.
“We will release many other modules related to financial duties,” said Salown. “We will further promote the export of accounting tools. We will further improve the connection, go down the stack and work on banking work at the lower level. So we will continue to modulate the whole stack.”
At the same time, the team wants to ensure that the client integration cost is as low as possible if you want to add another module.
“If you get three SaaS products to manage them, you will spend, I don't know, I don't know, $ 150,000 for three products and $ 150,000 for internal adhesive. I will tie it, “said Salaün. “Financial infrastructure is really a long tail with a small problem, and each can be a $ 10 million company. [annual recurring revenue] -Such a thing. But this platform play is really useful for expanding. “
Large -scale fintech companies, such as Stripe, also provide many fintech infrastructure services, but want to be independent. We do not handle payment and do not hold the client's money itself.
The company claims that there are about 20 customers, of which two are in the United States. According to Salaün, these two customers account for 40 % of startup revenue. Other clients include booksy, doctolib, liberis, and shares.
The bank plans to open an office in New York and hire a commercial team there, as the bank has a fresh $ 21 million. By the end of 2025, we would like to embody the engineering team and the product team aimed at increasing the number of employees from 20 to 50.