French fintechs are doing well! Fundraising resumed in 2024 to reach a total of 1.3 billion euros, according to the latest report from France FinTech. An amount increasing by almost 30% (28%) compared to 2023. This figure places France in second position among fintech ecosystems on the European continent, just behind the United Kingdom which has a total raised of 2.8 billion euros. Germany is placed just behind France with 874 million euros raised, a cumulative increase of 9%. Switzerland is in fourth position followed by Spain, Sweden then the Netherlands, with much lower amounts, under 250 million euros. France recorded the strongest increase in fundraising and young companies are increasingly targeting the markets of European neighbors.
France FinTech also highlights the resumption of internationalization in 2024 after a slowdown in 2022 and 2023. A quarter of fintechs have a foreign presence, underlines the annual report. A majority, 63%, is only in Europe, 24% are active in Europe and elsewhere in the world.
Obviously, it is the legislation, and in particular the “European regulatory passport” system of the European Union, which facilitates the establishment of French fintechs in its various member countries. “The regulatory passport is a system which allows an actor with approval in one country of the Union to access others without having to request a new one in the countries concerned.”, explains the France FinTech report.
And, in the 27, the French are particularly banking on Spain. Almost half of fintechs with a foreign presence are in Spain. 35% are in Germany and 31% are in Italy. These internationalizations should also accelerate with the adoption of several harmonized regulations at European level during 2025, which will bring down certain administrative and legislative barriers.
An increasingly mature ecosystem
In France, only two unicorns were born in 2024: Pennylane et Pigmenttwo fintechs. They are representative of a sector in full consolidation. By the end of 2024, one in three French fintechs have already reached their profitability threshold, according to the France FinTech annual report. The representative association of the French Fintech ecosystem count 1145 companies. Among them, 40% are considered “young shoots» with less than three years of existence, 46% are “startups», they are at the series A stage and employ less than fifty employees. 12% of companies listed by France FinTech fall into the “s” categorycaleup» that is to say that they have a viable economic model and a strong increase in market share and/or their turnover. Finally, 2% are unicorns.
This categorization clearly reflects the maturity of this growing ecosystem. 41% of category “s” companiestartups» are profitable, like 3 scaleups out of 5, notes the report. The achievement of break even is happening more and more quickly: a quarter of profitable fintechs were profitable in less than four years.
