Formance raises $21M to build the AWS for fintech infrastructure

Formance secures $21M to enhance fintech infrastructure with modular financial tools.

: Formance, a French startup, raised $21 million to expand its modular financial platform. It aims to address fintech infrastructure needs similar to AWS. The company plans growth, including a New York office and increasing its team to 50 employees by 2025. Customers include Booksy, Doctolib, and Liberis.

Formance, a startup based in France, has raised $21 million in a Series A funding round, backed by PayPal Ventures, Portage, and existing investors such as Y Combinator. The company is utilizing this funding to expand its modular financial infrastructure, aiming to simplify fintech operations much like Amazon Web Services has done for cloud hosting.

Initially focused on creating an open-source, programmable financial ledger, Formance is evolving its product line to include a connectivity platform for financial providers, payment orchestration, reconciliation, and a mass payout product. These tools are designed to solve the challenges fintech companies face when managing multiple financial service providers and diverse payment channels.

With approximately 20 customers, including two major clients in the U.S. that make up 40% of its revenue, Formance plans to open an office in New York and expand its team from 20 to 50 employees by the end of 2025. This growth strategy is aligned with its mission to keep integration costs low for customers while offering a scalable and independent platform that does not process payments or hold client funds.