French accountancy software provider Pennylane has raised €175m (£150m) in a major funding round as it accelerates product development and deepens its presence across key European markets. 

The company, headquartered in France and focused on cloud-based accountancy software for accountants and finance teams, is positioning itself for its next phase of continental growth.

The funding round was led by growth investor TCV, marking its first investment in Pennylane, with Blackstone Growth also joining as a new backer. 

Existing investors Sequoia, DST Global, Meritech and Alphabet’s CapitalG participated in the raise, reinforcing long-term confidence in the platform’s scale and commercial trajectory. The round values the company well above its previous €75m (£64m) funding secured in April last year.

Pennylane plans to deploy the capital primarily into research and development, with a strong focus on refining its platform for the German market, where it has recently launched. 

Germany represents one of Europe’s largest and most complex accountancy markets, characterised by stringent compliance requirements and a large SME base, making localisation and product depth critical.

Beyond geographic expansion, the company is investing in enhanced payments and cash management functionality. 

By integrating accounting, payments and real-time financial visibility, Pennylane aims to support closer collaboration between accountants and their business clients, while improving operational efficiency and financial oversight.

The scale of the investment reflects sustained momentum in the accountancy software market, as firms increasingly seek platforms that go beyond core bookkeeping to deliver automation, insight and end-to-end financial workflows. Private capital continues to flow into vendors capable of serving both practitioners and businesses with integrated, scalable solutions.

See more on how this funding round reshapes competition in European Accountancy software.