Pennylane, a French accounting software platform, has raised €175m ($205m) in a new funding round.

The round was led by growth investor TCV, which is investing in Pennylane for the first time. Blackstone Growth has also joined as a new backer.

Existing investors Sequoia, DST Global, Meritech and Alphabet’s CapitalG also participated in the latest capital raise.

The latest funding valued the business at around $4.25bn, according to a Bloomberg report.

Founded in 2020, Pennylane provides businesses with a suite of bookkeeping tools through a single online dashboard.

The accounting platform is designed for start-ups, small and mid-sized companies, and their accountants across Europe. It positions itself as an “all-in-one” platform that centralises accounting and financial operations in a shared workspace for companies and their advisers.

Pennylane co-founder and CEO Arthur Waller said: “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.

“This gives us the resources to stay fully independent while accelerating our lead in AI and expanding across Europe. Our mission remains unchanged: being the reference tool for accountants and their clients.”

Pennylane plans to channel the fresh capital into research and development (R&D), including refining its product for the German market, where it has recently launched.

The company also intends to upgrade its payments and cash management features.

In April last year, Pennylane raised €75m in a funding round. The investment was co-led by Sequoia Capital, Capital G and Meritech.