TCV has led a €175m funding round in French accounting software company Pennylane, valuing the business at about $4.25bn and cementing its status as one of Europe’s most valuable startups.

Blackstone also participated in the round, alongside existing investors Sequoia Capital, DST Global, CapitalG, and Meritech, Pennylane said. The investment adds growth equity firepower to a company that competes with global accounting software providers including Intuit and Xero.

Founded in 2020, Pennylane offers a single online dashboard combining bookkeeping, financial management, and compliance tools for businesses. The company plans to use the new capital to accelerate research and development, including the build-out of AI-powered assistants, and to tailor its platform to regulatory requirements 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,” said Arthur Waller, co-founder and chief executive of Pennylane.

The deal highlights continued private equity and growth investor appetite for European software platforms with strong domestic positions, even as venture funding remains selective across the region.

If you think we missed any important news, please do not hesitate to contact us at [email protected].

Can`t stop reading? Read more.