Operating payment flows is a fundamental part of growing a business. For marketplaces, platforms and fintechs, these flows constantly have to be tracked, analysed and evolved to fit market trends, needs and competitor movement. Making it quick and easy, Formance has secured €2.9 million.
Developing a low-code solution to build, track and implement payment flows in real-time, French fintech startup Formance has just raised about €2.9 million in fresh funding. The investment was led by Hoxton Ventures, Frst, Y Combinator and several business angels.
Business angels include Revolut’s former VP of global business, Don Hoang, and Silvr’s CRO, Pierre Youenou.
Founded in 2021 by Clément Salaün and Anne-Sybille Pradelles, the startup is developing an open-source solution to build and manage money flows based on pre-built, fully customizable use-case templates. The startup is tackling a fundamental segment of the payment value chain which is still overly complicated and lacking a simple solution.
Money flows are regarded as the lifeblood of companies – whether it be a marketplace, a platform or a fintech itself – managing flows between pay-ins and pay-outs is critical. Further, players have to constantly make their payment flows evolve to fit market trends, users’ needs, and competitors’ moves. Company growth is closely linked to the capacity to process an increasing volume of transactions and to integrate new payment scenarios, which can become increasingly complex.
Currently, tech teams of fintechs and marketplaces are tasked with the complicated job of building payment flows from scratch and the way they are broken down, then, making them evolve according to the development and the strategy of the company. It takes time, money and resources.
The goal of Formance is to provide companies with the means to unlock new business opportunities quickly, helping them diversify and increase revenues without the need to build payment flows from scratch. The French fintech has developed a library of ready-to-use- use-cases which are easily integrated. As a result, the startup offers technical teams a solution for modelling their specific payment scenarios and simplifying the process of breaking down and tracking these money flows properly.
The product is built upon four key pillars; a low-code basis, pre-built and customisable templates, a transaction ledger, and, real-time transaction tracking tools. It means that tech teams can implement and create payment flows in a matter of hours rather than days, finance teams can track financial flows, and, teams have greater data analysis opportunities.
Already adopted by users in both Europe and the US, the startup is able to meet the needs of both startups and SMEs as well as more mature companies looking for new business opportunities. To maximise accessibility, the Formance language and ledger are open-source and companies can subscribe to real-time transaction tracking tools based on the number of transactions they have.
With this first round of funding, Formance is kickstarting its goal to become the leading solution for orchestrating post-payment flows.
