FORMANCE, a Paris-based fintech startup, has raised $3.1 million for real-time payment flows. The company, which designs low code solutions to create payment flows in real-time has tapped $3.1 million on a round.
The round was co-headed by Hoxton Ventures and Frst and supported by Y Combinator and angel investors, including Don Hoang, Revolut’s former VP of global business, and Pierre Youenou, the Silvr’s CRO.
FORMANCE is presently used in the US and Europe as the country aims for expansion.
This new fund would be used to develop products and expand the company across Europe.
The French start-up was established by Anne-Sybille Pradelles and Clément Salaün in 2021. It’s designed to tackle a part of the payment value chain that’s still painful without an off-the-shelf solution; the tracking and break-down of the payment flow between payouts and pay-ins.
The Paris-based company provides an open-source solution to operate, build, and monitor money movements of any shape and size via a solid system-of-ledger or record.
The firm’s low-code solution and use cases templates permit online businesses to carry out their business strategies to model payment flows in hours.
What service does Formance render?
Formance has designed four tech API products to make it faster and easier for organizations with complex payments networks to monitor payment flows between payouts and pay-ins in real-time and in diverse intermediaries and merchants.
The company’s major offering is free and open-source. However, it charges for any customizable building blocks that firms might wish to add on top via a subscription model.
Since its creation in 2021, Formance has already good investors. They include Hoxton Ventures, Y Combinator, and Frst.
What’s next for the company?
Formance aims for expansion. It’s already talking to partner with the marketplace and other fintech companies globally.
The company started piloting its APIs with a fintech firm in February and plans to launch with more clients as it’s been speaking to new partners to get fresh funds.
The start-up also plans to grow its team to 12 people by this year-end, mostly employing engineering experts.
According to Pradelles, “We want to be conservative with hiring at the moment and focus on having a really strong core team of developers to work on the product before we scale.”
Currently, Formance targets SMEs and startups categorized as fintech or marketplaces. It plans to begin working with enterprise customers by next year.
Image by Nattanan Kanchanaprat from Pixabay