Pennylane, a French startup that sells accounting software, has raised €175 million (about $204 million) in a funding round led by growth equity firm TCV.
Blackstone is also participating in the round, alongside existing investors Sequoia Capital, DST Global, CapitalG and Meritech, according to the company.
The deal values Pennylane at around $4.25 billion, according to a person familiar with the matter.
Pennylane says it plans to put the new capital into research and development, including building AI assistants to help accountants analyze data.
The company also plans to adapt its product to comply with rules and regulations in Germany, a market it recently entered.
“We had no immediate need for funding, but the opportunity to partner with investors like TCV and Blackstone with low dilution was a strategic advantage,” co-founder and CEO Arthur Waller said.
Founded in 2020, Pennylane offers bookkeeping tools in a single online dashboard and competes with incumbents like Intuit and Xero, alongside newer entrants.
Pennylane’s latest raise makes it one of France’s most valuable startups, in a cohort that includes Mistral AI and Doctolib, as Europe’s tech scene looks to build more homegrown alternatives.
