French fintech Pennylane has secured a €175 million funding round led by TCV and Blackstone Growth, with continued backing from DST Global, CapitalG, Sequoia Capital, and Meritech Capital.

The raise values the company at about $4.25 billion (€3.6 billion), up from €2 billion following its €75 million round in April 2025.

Founded in 2020, Pennylane provides financial management and accounting tools for European SMEs, covering invoicing, payments, cash flow, expenses, and forecasting. The company now serves over 800,000 businesses, employs around 1,000 people, and has recently expanded into Germany while launching new services such as cheque deposits, payment terminals, and SEPA direct debit.

CEO Arthur Waller said the funds will be used to accelerate R&D, build out features like financing and inventory management, and invest heavily in generative AI to develop an AI-powered co-pilot for advisory services. The company also plans to strengthen its e-invoicing infrastructure and continue expanding across Europe.