France-based Embedded Finance platform Swan has raised EUR 37 million in a Series B funding round led by Lakestar. While the primary investment in this round was led by Lakestar, the event also saw the participation of Swan's existing investors.

The infusion of funds will be channelled towards advancing Swan's ongoing international expansion efforts, which include planned launches in the Netherlands in the near future, followed by an entry into the Italian market in early 2024. Swan has already established offices in France, Spain, and Germany and currently serves over 100 customers across 30 European countries, processing transactions valued at over EUR 7 billion according to the official press release. To accommodate this continued growth, Swan anticipates an increase in its workforce over the next two years.

The investment will also enable Swan to reinforce its enterprise-focused approach. The company currently collaborates with large, multinational organisations such as Carrefour, successfully executing projects such as cashback programs. Swan's strategy includes the introduction of new product lines tailored specifically for larger enterprises.

These additions will encompass diverse payment collection methods, including direct debit and card payments, as well as enhanced lending capabilities. Moreover, Swan aims to extend its services to new industries, including travel, insurance, and B2B marketplaces, thus complementing its existing product suite already in use across 16 different sectors. The importance of Embedded Finance The company press release reveals that Embedded Finance solutions are poised to become increasingly vital for companies of all sizes and industries.

Approximately 40% of financial services, particularly payments, are expected to adopt this approach in the near future. The Embedded Finance market is expected to reach an estimated value of USD 384.8 billion by 2029. Representatives from Swan talked about the company's mission to establish itself as the leading tech-driven bank in Europe.

Swan's BaaS technology, known for its simplicity and scalability, underpins its success. With the support of Lakestar, Swan aims to expand its technology and its benefits to businesses of all sizes and industries in a bid to actively shape the future of financial services. Lakestar, known for its support of the European tech ecosystem, views Swan as a frontrunner in the Embedded Finance space.

Representatives from Lakestar highlighted Swan's ability to enable businesses to diversify revenue streams and provide financial products precisely when users need them. In September 2022, Swan raised EUR 16 million courtesy of Accel and Creandum. At the time, the company also announced its plans to expand into Germany.

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