Payflow continues to consolidate its growth in Spain and advances in its internationalization, which has begun in Latin American countries such as Chile and Colombia. Recently, the on-demand financial wellness platform has closed a financing round of eight million euros.
In 2022 they plan to start operations in two additional countries and launch at least two more products. Payflow continues to lead the pay on demand industry. The being able to charge whenever you want It has become a trend that continues to grow in many sectors. Being able to instantly access the fraction of salary that has already been earned allows employees greater control over their finances and empowers them to balance income and expenses more effectively, thus helping them improve their financial well-being.
Since its creation in 2020, the company has made the leap from Spain to Silicon Valley through the program Y Combinator. In addition, the company closed the year consolidating itself in Spain with more than 175 clients, among which are recognized brands such as Scalpers, Covirán, Aristocrazy and Grosso Napoletano, as well as large companies with thousands of employees such as Hospitales Vithas, Webhelp and Aquaservice. Also, the company’s churn rate is 0%, they haven’t lost a customer since they started the project.
According to Bruno González, partner and executive director at Grosso Napoletano: “At Grosso Napoletano we are growing a lot and Payflow is one of the reasons why we are managing to hire staff so quickly. Plus, it’s incredibly easy to implement and I can’t think of any reason why a company like ours wouldn’t implement it.”
The best financed salary-on-demand fintech in the European Union
After closing this operation, the total financing obtained by Payflow to date exceeds 12 million eurossince it previously raised two million euros in the seed phase and another two million euros in debt issuance.
These figures make Payflow the best-funded pay-on-demand company in the European Union. In addition, it is the only solution of its kind in Spain that never charges employees, its business model is to charge a monthly fee to their client companies. That is why Payflow has the support of works councils and unions, and a membership of 40%, 5-10x higher than other pay-on-demand providers and other social benefits.
Benoît Menardo, co-founder of Payflow, justifies this support in that “The investment market is relatively efficient, in general the startups that get the most traction are the ones that raise the most financing. In just 2 years we have established ourselves as the regional leader in our sector, with more than 175 clients and 100,000 users. Therefore, we are very pleased to have become the best-backed company, both in terms of the amount of financing received and the quality of our investors.”
After the closing of this round, Payflow sets itself the goal of working with the most influential companies in the country, including those that make up the IBEX 35, and continuing to grow in number of clients, multiplying by five the base they currently have. In addition, they plan to develop their “superapp”, launching two new products throughout 2022 and many more in the coming years with the aim of positioning themselves as a neobank.
new investors
In this new round of investment, it has had the support of important national and international investors. For Avinash Sukhwani, Co-Founder of Payflow, “It is an honor to be endorsed by these new top-tier investors, but the real honor is to see the enormous satisfaction of our 100,000 users when they realize that our solution is free for them. We will not stop until all workers in Europe and Latin America are given the flexibility to charge when they deserve it”.
Among the new investors is Seaya Ventures, the venture capital with the most Spanish unicorns, such as Glovo, Cabify or Wallbox. It has also had the support of Cathay Innovation through C. Entrepreneurs, a venture capital that also backed Glovo, Wallbox and Chime, among 14 other unicorns. YCombinator, sponsor of projects such as Dropbox and Airbnb, is also part of this new round, as well as investors Pablo Fernández (Clicars, Olapic or Clikalia) and Félix Ruiz (Tuenti, Jobandtalent, Playtomic).
The managing partner of Cathay Innovation, Jacky Abitbol explains the reasons why they have participated in the latest financing round of the Spanish fintech: “We see great potential in the pay-on-demand sector, especially in regions like LaTam, where there are still an impressive number of people underserved by traditional financial products. With impact being one of our core values when it comes to investing, we are confident that the great team at Payflow will continue its impeccable growth trajectory to bring financial well-being to workers, and our global ecosystem is here to support this project.”
For her part, Beatriz González, founding partner of Seaya Ventures, considers that “Wage on demand is a global trend. In a few years, everyone will be able to access their salary on demand. Payflow has impressed us a lot. We fully trust that Avinash, Benoit and the rest of the team are the best to promote the company in Spain and Latin America thanks to their great business vision and common values».
Photo: Five Days
