If you talk to a Fintech businessman about their business, they will end up talking about the problems of the professor’s book at some point.
Professor’s book is a record of money movements that work as a source of truth for financial assets, but when the company begins to obtain multiple bank accounts, payment processors and money scattered through separate services, it can become a headache to manage it. Most companies end in dedicating engineering resources to build their professor’s book to solve this.
The French start -up starting to try to take advantage of this need through the open source and programmable financial professor’s book can track all the assets that move inside and outside your accounts. Now, this product works as a storage pillar to play the wider and most ambitious infrastructure.
“In 2024, and even before, we focused mainly on the professor’s book. Then we started preparing to move from the professor’s book product to the training platform with other units – the reconciliation part, for example, connectors of payment services, etc.” said the co -founder and Cto Clément Salaün for Techcrunch.
Formance currently offers five products: In addition to the professor’s book, there is a calling platform for integrating financial service providers using one applications interface; Organizing payments to transfer money through the governor and payment providers; And reconciliation.
The startup also works on a large payment product for markets and other companies that need to issue payments. Developers can already manage payments software using Stripe, Adyen or MangoPay, but Formance wants to create intermediate programs that work through many service providers.
The company recently raised an article from the A series of $ 21 million Paypal projects and Portage. The current investors participate Yombinator, Hoxton Ventures and Axeo as well.
Platform
Startup believes that there is a value in providing a standard platform similar to Amazon Web Services Take on Cloud Hosting: Customers can use one service, but it is more efficient if you house all cloud infrastructure under the same ceiling.
“We will issue a number of other units, especially with regard to financial operations,” said Salun. “We’ll go further with exports of accounting tools. We will also improve the connection step forward and go down in the stack and work on banking services at a lower level. So we will really continue to determine the entire stack.”
At the same time, the team wants a guarantee that the costs of integration remain as low as possible for their customers if they want to add another unit.
“If you get three Saas products to manage these products, you will spend, I do not know, 150,000 dollars on the three products and $ 150,000 on the inner glue to link them together,” Slun said. “Financial infrastructure is in fact” a long tail of small problems “, each of which can have a company of $ 10 million (repeated annual revenues) – something like this. But this is in fact playing the platform that can help us expand Beyond that.
Fintech companies such as Stripe provides many Fintech infrastructure services, but Formance wants to remain independent. He does not treat payments, and does not carry customer money himself.
The company claims that it has about 20 customers, two of them in the United States – according to Salaün, these two customers account for 40 % of startup revenues. Other customers include Booksy, Doctolib, Liberis and Cares.
With a new $ 21 million in the bank, Formance plans to open an office in New York and employ the market for the market there. It also wants to embody engineering and products teams in line with their goal to increase the number of employees from 20 to 50 employees by the end of 2025.
