Welcome to Dealflow France!

Subscribed

Startup funding news 💸

Rounds of $15M+:

• Fairmat, specializing in recycling carbon fiber composites, has raised €51.5 million in a Series B funding round, comprising €26.5 million in equity and €25 million in venture debt from the European Investment Bank. The company employs AI-powered robots to cut waste into small chips and reassemble them into high-quality material sheets, a process that reportedly recovers up to 90% of the waste material while emitting ten times less CO2 compared to traditional methods.

• Archipel has raised €50 million from Otium Partners to accelerate its mission of consolidating the accounting sector by acquiring around five firms per year. Founded in 2024, the company aims to help accounting practices modernize and scale amid looming digital challenges, with a goal of reaching €150 million in revenue by 2029.

• Legaltech startup Tomorro has raised €25 million in a Series B round to scale its AI-powered contract management platform, with plans to expand into Germany - Europe’s largest mid-market. Backed by XAnge and Acton Capital, the company has 300 clients including Nestlé and Ingenico, and is riding the wave of growing demand for AI solutions in legal departments seeking efficiency and automation.

• Fintech startup WeeFin has raised €25 million in a funding round led by BlackFin Capital Partners to accelerate the international growth of its ESG strategy platform for financial institutions. With 40 clients including Generali and BPCE, WeeFin’s software streamlines data collection, reporting, and regulatory compliance in a shifting global ESG landscape, positioning itself as a key European player amid rising scrutiny and evolving standards.

• French green chemistry startup Ecoat has raised €21 million to scale up its production of plant-based resins that replace petroleum-based binders in paints, aiming to triple its output and accelerate industrial decarbonization. With strong international demand and patented technology, Ecoat plans to expand globally while maintaining annual growth of 40–50%, targeting a fivefold increase in business by 2030.

• FairlyMade, specializing in fashion supply chain traceability and environmental impact assessment, has secured €15 million in funding led by BNP Paribas Solar Impulse Venture Fund, with participation from GET Fund, ETF Partners, and Frenchfounders. This investment will enhance their SaaS platform, enabling brands to monitor their supply chains and measure products' environmental and social impacts, aiming to establish itself as the European standard for sustainable fashion technology.

Rounds €5M to €10M:

• Nantes-based startup Underdog, focused on refurbishing large household appliances, has raised €7 million in a Series A funding round with continued support from Daphni, Sistafund, Tivoli, Founders Future, and new investors like BNP Paribas and Serena. The funds will be used to double the capacity of their Nantes facility by the end of 2025 and establish three additional industrial sites in France by 2027, aiming to refurbish over 70,000 appliances annually and create 200 specialized technician jobs.

• Franco-Swiss insurtech Grace has raised €5.9 million in seed funding to expand its embedded insurance service, which offers luxury brands a free two-year protection against theft or loss for their customers. By integrating seamlessly with brands' sales channels and collecting valuable customer data, Grace aims to cover over 200,000 luxury items by the end of 2025 and position itself as a one-stop insurance platform for the luxury sector.

Rounds €1M to €5M:

• Healthtech startup Parallel (formerly Kiosk) has raised €3.5 million to expand its AI-powered solution that automates medical coding for hospitals, aiming to reduce billing errors and free up administrative time. Currently piloting in ten French hospitals, the company plans nationwide and European rollout by 2027, with ambitions to tackle broader hospital workflows like ER admissions, scheduling, and clinical trials.

• Tremau has raised €3 million to expand its AI-powered content moderation platform, helping online platforms combat misinformation, cyberbullying, and harmful content while complying with regulations like the EU's Digital Services Act. With clients including Eventbrite and Ko-Fi, Tremau currently generates most of its revenue from advisory services but aims to shift toward a 50/50 split with its software offering over the next year.

M&A transactions 🎊

French digital health company Imagine Human has expanded internationally with the acquisition of Saphir Consult, a move that extends its reach to 40 countries. Specializing in mental health and well-being software for healthcare institutions and corporations, Imagine Human aims to scale its impact globally by integrating Saphir’s expertise in organizational consulting and international deployment.

French polling giant Ipsos has entered exclusive negotiations to acquire rival BVA, aiming to strengthen its position in France and expand further into the UK and Italian markets. The deal marks a strategic rebound after Ipsos dropped its bid for Kantar Media in late 2024, and would bring under its umbrella BVA’s extensive market research expertise and brands such as Doxa, BDRC, and PRS IN VIVO.

Investor & accelerator news 🚀

​Revaia, Europe's largest all-women-led venture capital firm, has finalized its second fund at €250 million to invest in European and Israeli startups at Series B and beyond, emphasizing B2B companies committed to sustainability. Despite a challenging fundraising environment, Revaia attracted new institutional limited partners, including JP Morgan and the European Investment Fund, with about 30% of its investors now international.

Maddyness interviewed Julie Huguet, director of Mission French Tech, regarding the 2025 selection criteria for the Next 40/French Tech 120 program. Huguet emphasized a heightened focus on companies' innovation capacity, particularly in artificial intelligence, and their commitment to environmental and social responsibility. The application deadline is April 28, 2025.

Startup news 💡

French shipping giant CMA CGM and AI startup Mistral have entered a €100 million, five-year partnership to develop AI models aimed at enhancing customer service in shipping and logistics, as well as improving fact-checking processes in CMA CGM's media outlets, including BFM TV. This collaboration is expected to reduce response times for customer inquiries and demonstrates a commitment to integrating AI within organizations to boost Europe's competitive edge.

French biotech startup Smart Immune, backed by the Bill & Melinda Gates Foundation, has entered judicial reorganization after running out of funds despite raising €30 million to develop its ProTCell therapy, aimed at rapidly rebuilding immune systems in leukemia and potentially HIV patients. With seven takeover offers already on the table, the company’s innovative but capital-intensive approach—requiring an estimated €250 million to reach market—highlights the deep funding gap facing biotechs in France during the critical transition from lab to viable treatment.

Welcome to the Jungle has launched a new AI-driven talent sourcing tool to enhance personalization and efficiency in recruitment. Designed to support employer branding and provide actionable insights, the solution aims to tackle key challenges in attracting and engaging top candidates.

Big company & policy news 💡

A coalition of over 100 French media outlets, including TF1, Radio France, and Le Parisien, is preparing to sue Meta in Paris, accusing the tech giant of violating GDPR rules to unfairly dominate the ad market and causing hundreds of millions of euros in damages. The lawsuit adds to Meta’s mounting legal woes in Europe, where it faces potential fines of up to €6 billion and scrutiny under the Digital Markets Act for its data practices on Facebook and Instagram.

​The French Competition Authority has fined Apple €150 million for abusing its dominant position in mobile app advertising through its App Tracking Transparency (ATT) feature. Introduced in 2021, ATT requires apps to obtain user permission before tracking their activity, a move criticized for disproportionately affecting smaller publishers reliant on third-party data. The regulator stated that while ATT's goal of enhancing privacy isn't objectionable, its implementation was neither necessary nor proportionate, leading to an unfair advantage for Apple. Apple expressed disappointment with the decision but noted that no specific changes to ATT were mandated.

Interesting reads 💡

With the collapse of Sweden’s Northvolt, Sifted reports that all eyes are now turning to Verkor - France’s rising gigafactory hope - to see if it can succeed where its Scandinavian peer failed. Backed by Renault and bolstered by €2.6bn in financing, Verkor is betting on a focused, measured strategy: one factory, one core customer, and a clear roadmap - a stark contrast to Northvolt’s rapid-fire expansion and diversification. Positioned within France’s “Battery Valley” and supported by the French state, Verkor may be Europe’s best shot at building a homegrown battery champion - if it can navigate the shifting tech landscape and rising global competition.

Maddyness interviewed Cyril Chiche, CEO of Lydia, who shared that the fintech is nearing profitability and open to all strategic paths over the next five years - including a potential IPO. Now operating under Lydia Solutions with its private banking app Sumeria, the company aims to become the go-to financial platform for young Europeans.

Thanks for reading Dealflow France! Subscribe for free to receive new posts and support my work.

Subscribed