Pennylane raises 175 million euros in Series E

Pennylane, provider of an AI-supported all-in-one platform for finance and accounting processes, has closed a Series E financing round of 175 million euros. The round was accompanied by a comparatively low dilution of around five percent and is led by growth equity firm TCV. Blackstone Growth and the company's existing investors are also involved.

Strong growth as the starting point for the financing

The financing takes place against the backdrop of the company's dynamic growth. Pennylane now generates more than 115 million euros in annual recurring revenue (ARR) and is used by over 800,000 companies and around 6,000 tax advisory firms. The team now comprises around 1,000 employees. The company has thus exceeded its original growth targets and, according to its own statements, is on the verge of profitability.

Focus on independence and strategic preparation

The aim of the financing round is not to secure the operational business in the short term, but to position the company strategically for the long term. Pennylane wants to prepare for a possible consolidation of the European market for accounting software at an early stage and at the same time secure its own independence.

We had no immediate financing needs, but the opportunity to work with investors such as TCV and Blackstone at very low dilution was strategically compelling.

Arthur Waller, Co-Founder and CEO Pennylane

The capital is to be used for the German market in particular. Since the official launch in Germany in November 2025, the company has recorded strong growth there. According to Tobias Janiesch, Managing Director Germany, the financing will enable further targeted investments in the product, market development and localization.

Long-term oriented investors

With TCV and Blackstone Growth, Pennylane has deliberately chosen investors with experience in the international SaaS and FinTech environment. TCV has invested in companies such as Revolut, Nubank and Xero, while Blackstone Growth has investments in high-growth technology companies such as Anthropic and Oatly.

We are excited to support the founders and their team as they begin their international expansion, starting with Germany, and look forward to the next phase of growth.

Nicolas Dupuis, Managing Director at Blackstone

All investors are committed to Pennylane's internal commitment. This includes price stability, continuity of product strategy and full control of the company by its founders.

Investments in AI, regulation and e-billing

The fresh capital will primarily flow into research and development. A central focus is on generative AI, for example in the form of an analysis and co-pilot assistant that supports tax consultants in advising their clients.

Pennylane is also working on the further European localization of its platform, particularly with regard to regulatory requirements in Germany. The expansion of the infrastructure for electronic invoicing from 2026 and additional payment and cash management functions are also on the roadmap.

Classification from a business perspective

With this strategy, Pennylane is pursuing the goal of establishing a standardized accounting and finance platform for SMEs and tax consultancies throughout Europe. From the perspective of many founders and growth-oriented companies, however, Pennylane's approach only seems like an interim step. Although the closer integration of software, AI and tax advice is a step forward, there is often a more fundamental desire in everyday business life: a fully automated solution that largely replaces traditional tax advice.

Accounting and taxes are perceived by many companies primarily as a regulatory obligation. They are costly and time-consuming, highly bureaucratic and do not deliver any direct added business value themselves. Start-ups and young companies in particular are regularly slowed down as a result. A truly cost-effective, AI-based end-to-end solution that handles tax obligations largely autonomously could provide significantly greater leverage for productivity, speed of innovation and the competitiveness of the economy as a whole.