A packed week for the French Tech: two standout fundraises in defense tech highlight a deepening interest in dual-use AI, with military applications at the forefront. On the M&A front, the momentum is just as strong: Dailymotion acquired video AI startup Mojo, Qwant took over ethical search engine Lilo, and Greenbids was bought by Nasdaq-listed Perion. Other strategic moves include Krys acquiring Seecly to enter the second-hand eyewear market, and Younited signing a deal to acquire green fintech Helios.

Meanwhile, France doubled down on its AI ambitions. At the Choose France summit, the Élysée confirmed €17 billion in AI-linked investments on top of the €20 billion in total foreign pledges, anchored by massive data center projects from Brookfield, Digital Realty, and Prologis.

In parallel, France Digitale board is set for renewal, with top names from VC and startup circles in the running.

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Startup funding news 💸

Rounds of €15M+:

• Florian Fournier, co-founder of PayFit, has launched a new startup named Orasio, focusing on defense technology. The company has secured €16 million in funding from European investors, including Frst, Global Founders Capital, and Expéditions Fund. Orasio develops AI solutions for real-time analysis and detection of critical situations in video streams, aiming to assist military, local authorities, and large enterprises in monitoring and responding to abnormal events.

Rounds €5M to €15M:

• Riverse has raised €5 million in seed funding to expand its carbon credit certification platform tailored for industrial projects. With over 250,000 credits issued since 2022, Riverse aims to meet the growing demand for credible, sector-specific carbon offsets from major clients like BNP Paribas and EDF.

Rounds €1M to €5M:

• Plakar, co-founded by Julien Mangeard and Gilles Chehade, has secured $3 million in pre-seed funding led by Seedcamp, with participation from Kima Ventures, Motier Ventures, and prominent angel investors. The company aims to transform data backups from passive storage into strategic assets through its open-source platform, Kloset, which creates encrypted, deduplicated, and queryable snapshots

• MecAgent has raised €2.75 million to automate mechanical design using AI. Its platform converts text or sketches into 3D CAD files, streamlining design workflows with features like real-time cost estimation and standards compliance. The funding round included investors such as Outlander VC, Founders, Inc., Earthling VC, Kima Ventures, Irregular Expressions, and business angels Thomas Wolf and Arnaud Kooij.

• Defense tech startup Alta Ares has raised €2 million to scale its AI solutions, Gamma and Ulix, developed in collaboration with Ukrainian forces. Gamma provides real-time video analysis for drones, while Ulix is an ML Ops platform enabling military units to train AI models on operational data without internet or cloud access, enhancing European defense autonomy.

• Legaltech startup Legapass has raised €1.2 million in a funding round led by Adnexus and Techmind to enhance its digital asset inheritance solutions for notaries. The funds will support the development of tools like VigiNot, which automates anti-money laundering compliance, and Radar, which helps identify hidden assets during estate settlements

M&A transactions 🎊

Younited has signed a binding offer to acquire French green fintech Helios SAS, aiming to integrate Helios's eco-friendly banking services into its real-time credit platform. The acquisition, expected to close by July 2025 pending regulatory approval, will enable Younited to offer a comprehensive suite of financial products—including sustainable current accounts, life insurance, and instant loans—to over one million clients across France, Italy, Spain, and Portugal.

Adtech startup Greenbids, known for its AI-driven platform that optimizes digital advertising campaigns while reducing carbon emissions, has been acquired by Nasdaq-listed Perion Network. The deal includes $27.5 million in upfront cash, a $22.5 million two-year earnout, and $15 million in employee retention incentives. Greenbids' technology, already used by over 80 brands including Spotify, Ford, and Accor, will be integrated into the Perion One platform to enhance performance-based advertising across major channels like YouTube, Facebook, and Google DV360.

Dailymotion, a subsidiary of Canal+, has announced the acquisition of French AI video creation startup Mojo, developed by Archery. Mojo's platform offers features like automatic subtitling and video generation from images or text, boasting over 300,000 paying subscribers. Founded in 2018 by Jean Patry and Francescu Santoni, the company is profitable with a team of 30 employees. Dailymotion plans to integrate Mojo's AI capabilities into its offerings for professional clients and advertisers, aiming to establish itself as a leading European video social network and compete with platforms like YouTube and TikTok.

Krys has acquired Seecly, a French startup founded in 2019 by optician Pauline Marmoyet, which operates a second-hand eyewear marketplace. Seecly, known as the "Vinted of glasses," offers refurbished frames fitted with Krys lenses, with the added benefit of reimbursement by the French Social Security system. Marmoyet will continue to lead the company, leveraging Krys's resources to expand operations and promote sustainable eyewear solutions.

Team Vitality, the leading French esports organization, has taken a significant step in its international expansion by acquiring Indonesian club Bigetron Esports. This strategic move marks Vitality's first acquisition and strengthens its presence in Southeast Asia, a region with a rapidly growing mobile gaming market.

Search engine Qwant has acquired its compatriot Lilo, a solidarity-based search engine that donates 80% of its advertising revenue to social and environmental projects. This strategic move aims to reduce Qwant's reliance on Microsoft's Bing index and bolster its user base by adding Lilo's one million monthly visitors to its existing six million, enhancing its appeal to advertisers and supporting the development of a European search index.

Rodolphe Saadé, chairman of shipping giant CMA CGM, has acquired a 20% stake in cinema group Pathé through his family holding, Merit France. This strategic move supports Pathé’s international expansion and cinema modernization efforts, and aligns with Saadé’s broader push into media and culture following recent investments in La Provence, La Tribune, and Altice Media (BFM TV, RMC).

Investor & accelerator news 🚀

France Digitale is preparing to renew its board, with elections open from May 19 to June 18, 2025, culminating in the announcement of new members at the annual general meeting. Seven investor candidates, including incumbents Benoist Grossman (Eurazeo), Elina Berrebi (Revaia), and Jérôme Masurel (50 Partners), are vying for positions, alongside newcomers Antoine Boulin (Red River West), Quentin Jonas (PSG Equity), Arnaud Laurent (Ovni Capital), and Alexandre Mordacq (360 Capital). On the entrepreneur side, eleven candidates are competing, with Jade Francine (WeMaintain) seeking re-election. This election marks the second phase of a board expansion to 18 members, ensuring balanced representation between investors and entrepreneurs.

EDF and Siparex have launched the Fonds France Nucléaire 2 (FFN2), a €300 million investment fund aimed at supporting French nuclear SMEs and mid-sized companies. The fund's first close secured €100 million from EDF, Framatome, Orano, TechnicAtome, and Siparex, with its inaugural investment in Ekoscan Integrity Group, a provider of advanced non-destructive testing solutions for critical industries.

Startup news 💡

The Paris Bar Association has partnered with French legal AI firm Jimini to offer small and mid-sized law firms (up to 20 lawyers) 3 months of free access to Jimini’s generative AI platform. This initiative aims to streamline routine legal tasks - such as document review, legal research, and drafting - while upholding strict standards of data confidentiality and professional ethics, with all data securely hosted in France.

Nepting, a leading payment solutions platform, has integrated Lyzi's cryptocurrency payment system, enabling merchants to accept over 80 cryptocurrencies, including Bitcoin and Ethereum, with transactions instantly converted to euros to mitigate volatility risks.

BlaBlaCar has officially launched the sale of SNCF train tickets on its platform, covering 350 stations across 200 French cities. This move aims to establish BlaBlaCar as a multimodal travel hub, integrating train, carpooling, and bus services to offer seamless door-to-door journeys.

Healthtech startup Lifen is presenting strong results ten years after its launch, reporting €20 million in annual revenue. Co-founded in 2015 by Franck Le Ouay (ex-Criteo), Lifen has become a key player in digital health with secure solutions for medical document exchange and care coordination, supported by €27.5 million in funding and recognition in the French Tech 120 and Next40 programs.

Big company & policy news 💡

At the 2025 Choose France summit, the Élysée confirmed that €17 billion will be specifically allocated to artificial intelligence investments—in addition to the €20 billion in total foreign investment pledges announced by President Emmanuel Macron. This surge reflects growing international confidence in France’s AI ecosystem. Among the key projects, Canadian fund Brookfield and French firm Data4 will invest €10 billion to build a massive AI data center campus in Cambrai, expected to create 4,000 jobs. U.S. data center giant Digital Realty is committing €2.3 billion to facilities in Dugny and Marseille, while Kyndryl, the IBM spinoff, will invest €100 million in a new digital hub at Sophia Antipolis, recruiting 300 specialists. Prologis is also expected to unveil a €6.4 billion plan for four new data centers in Île-de-France. These investments mark a decisive step toward strengthening France’s digital sovereignty and accelerating its leadership in AI infrastructure.

Atos has announced a €100 million investment plan targeting early-stage startups in artificial intelligence and cybersecurity, aiming to rejuvenate its innovation strategy through direct investments rather than establishing a corporate venture capital fund. This initiative is part of the company's broader "Genesis" strategic plan, which includes the creation of a new "Data & AI" division expected to expand from its current 2,000 employees to 10,000, and the recruitment of a new CTO from the U.S. West Coast with expertise in AI.

In response to a recent attempted kidnapping of a crypto entrepreneur's daughter in Paris, French Interior Minister Bruno Retailleau convened a meeting with industry stakeholders and law enforcement to address escalating security concerns. Measures announced include priority emergency response for crypto professionals, security briefings with elite police units, and home safety consultations.

JCDecaux is partnering with French startups via the “Je choisis la French Tech” initiative to enhance public services and internal operations. Projects range from urban sustainability (EcoMégot) to logistics (Shiptify) and HR tech, with successful pilots scaled through standard procurement.

Le Monde has entered into a content partnership with US-based AI startup Perplexity, allowing the AI firm to access Le Monde's content to enhance its AI-powered search engine responses. In return, Le Monde will utilize Perplexity’s technology, supported by Nvidia, to develop new AI-driven products, aiming to expand its audience and create new revenue streams.

Interesting reads 💡

VivaTech has unveiled its 2025 "Top 100 Rising European Startups," spotlighting 22 French companies poised for significant growth. This list emphasizes startups with over €5 million in annual recurring revenue and at least 40% growth over the past three years. Notable French entrants include Mistral AI (large language models), Pigment (business planning software), and La Vie (plant-based meat alternatives).

Maddyness interviews Théau Peronnin, co-founder of Alice & Bob, reflecting on France’s leadership in quantum computing and the company’s progress since its €100 million fundraising in January. He discusses their shift from R&D to production, the upcoming Paris quantum lab, and the race to build a fault-tolerant quantum computer by 2030.

In a recent article on Maddyness, Frédéric Raillard, CEO of [Ai]magination and Global CEO of Fred & Farid, explores the concept of "Physical AI", emphasizing its potential to redefine our humanity. Drawing insights from SXSW 2025, Raillard discusses how AI is transitioning from digital interfaces to tangible, real-world applications, fostering a symbiotic relationship between humans and machines.

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