Formance, which provides an open source fintech infrastructure platform licensed under the MIT License, raised a $21 million series A round led by PayPal Ventures.

Formance replaces in-house software that companies are forced to build in order to connect to a multitude of fintech vendors and facilitate custom workflows between them. According to founder Clément Salaün, “The open source component [of our strategy] was non-negotiable and actually really strategic for us.”

Formance’s business model is based on a SaaS offering, a hybrid cloud offering, and services provided in connection with its fully self-hosted offering.