French fintech startup Formance has raised US$21 million in a series A funding round led by PayPal Ventures and Portage.

The round also saw participation from existing investors Y Combinator, Hoxton Ventures, and Axeleo.

Formance provides infrastructure solutions for financial operations, including a programmable financial ledger, payment orchestration, and reconciliation tools.

The startup is developing a mass payout product that will connect with providers like Stripe, Adyen, and Mangopay.

Formance currently serves 20 customers, including Booksy, Doctolib, Liberis, and Shares. with US-based clients contributing 40% of its revenue.

With the new funding, Formance plans to open a New York office and expand its workforce from 20 to 50 employees by the end of 2025, focusing on engineering and product development.