4 French FinTech companies to watch out for in 2021
By Joy Dumasia
FinTech is used to describe new tech that seeks to improve and automate the delivery and use of financial services. At its core, FinTechs help companies, business owners, and consumers better manage their financial operations, processes, and lives by utilizing specialized software and algorithms used on computers and, increasingly, smartphones.
There is a general sense of optimism in the French FinTech scene, owing to effervescent startup culture, increased access to capital, availability of technical talent, financial incentives, and the uncertainty of Brexit as an opportunity for France in the Paris Region. National and foreign investment continues to drive innovation; inevitably, banks and other financial stakeholders will increasingly look to France and the Paris Region for technology, innovation and talent to grow and transform their business.
The following are the 4 French FinTech companies to watch out for in 2021:
In France, payroll administration has always been a complicated and time-consuming task. Firmin, Florian and Ghislain believed that by creating a platform that could automate payroll tasks, they would revolutionize the somewhat old world of payroll and HR. PayFit serves over 5,000 SMEs in France, Spain, Germany and the UK and has 500 employees, otherwise known as PayFiters, offices in Paris, Barcelona, Berlin and London.
IBS Intelligence recently reported that European enterprise SaaS company, PayFit has reportedly launched a new receipt capture functionality. The announcement follows the company’s expansion over the last year and the growth of its team to over 500. The latest offering is expected to cut down the time taken by employees in submitting expenses through receipt scans.
Lydia creates mobile daily financial services that remove the complexity and slowness of banking, accessible through an intuitive app and supported by people who genuinely care. It can be used to replace the bank apps only or to replace the bank account and services altogether.
Recently, IBS Intelligence reported that French FinTech Lydia announced the extension of its Series B with $86 million funding led by Accel. This brings the total Series B funding round to $131 million. Amit Jhawar, the former General Manager of Venmo and Accel venture partner, led the investment for Accel and will join the Board of Directors.
Founded in 2016, Qonto is a neobank for SMEs and freelancers. It aims to assist business owners through streamlined account opening, accounting exports, expense management features and allows them to have more control while giving their teams autonomy. It also aims to provide visibility on cash-flows through intelligent dashboards, transactions auto-tagging, and cash-flow monitoring.
Recently, IBS Intelligence reported that Paris-based challenger neobank, Qonto has raised an additional €104 million in a Series C round led by investors Tencent and DST Global, along with the participation of existing investors Valar and VC Alven, and new business angels Taavet Hinrikus (TransferWise’s co-founder and chairman) and Ingo Uytdehaage (CFO at Adyen).
Founded in Paris in 2016 by Rodolphe Ardant, Jordane Guily and Guilhem Bellion, Spendesk now helps over 40,000 end-users at growing businesses to spend smarter.
Recently, IBS Intelligence reported that Spendesk, the all-in-one spend management platform for finance teams, has raised €100M in Series C funding led by global growth equity firm General Atlantic. All previous investors, including Index Ventures and Eight Roads Ventures, participated in this round, bringing Spendesk’s total funding to €160M.
Spendesk plans to affirm its position as a leading spend management solution in Europe with the new funds. This includes doubling headcount within the next two years and accelerating product innovation, with Slack and Microsoft alumnus James Colgan having recently joined as Chief Product Officer.
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