Payflow Closes €8M Round to Boost its International Expansion
Without resorting to credit or microcredit, Payflow advances payroll in one click and deposits the money directly into employees’ bank accounts, helping them deal with unforeseen events: a service at no cost to employees. Payflow charges employers a fee based on the number of employees using the product. The company has just closed a $9.1 million (about €8 million) financing round.
The Spanish fintech company Payflow, based in Barcelona, has raised $9.1 million (about €8 million) in a Series A funding round, according to a press release.
The round had both Spanish and foreign players as investors, including Seaya Ventures, Cathay Innovation, Force Over Mass Capital, YCombinator, and Rebel Fund. Thanks to this new financial injection, the Spanish company has raised its value to $13.6 million (about €12M) since its launch in January 2020.
The goal that Payflow has in mind after receiving this injection is to create a super app that will seek to fulfill the company’s ambition to position itself as a neobank during 2022, with tools aimed at both a B2B and B2C market. In addition to strengthening its position in Spain, these resources will enable Payflow to accelerate its expansion in Chile and Colombia, where it has just entered. In addition, it has already begun to conduct tests with a view to entering two other markets: Italy and Portugal.
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Payflow advances payroll in one click and deposits the money directly into employees’ bank accounts
Payflow is a startup founded in February 2020 by Avinash Sukhwani and Benoît Menardo and launched in April of the same year, whose main objective is to allow employees to collect the fraction of their salary they have already worked through their mobile app, at any time and without the need for companies to have cash flow, betting on simplicity and ease in payroll settlement processes.
Without resorting to credit or microcredit, Payflow advances payroll in one click and deposits the money directly into employees’ bank accounts, helping them deal with unforeseen events: a service at no cost to employees. Payflow charges employers a fee based on the number of employees using the product.
Payflow also aims to differentiate itself against other startups that have sprung up around employee compensation management.
“We differentiate ourselves from other pay-as-you-go companies because we don’t charge an employee for using the service (we are the first real benefit to the employee, the company pays in full),” said Payflow co-founder Avinash Sukwani.
Payflow is free for users and always will be,” said Benoit Menardo, co-founder of the company, “Our vision is to provide a real benefit for blue-collar workers, and we believe that if the employee paid for it, it would not be a real benefit.”
Money for employees in minutes, increased productivity and motivation for businesses
Exactly when employees can withdraw their money will depend on the rules set by each company, but generally, it can be withdrawn as soon as the work is complete or approved if approval is required.
The money can reach users in minutes, and its system integrates with the company’s systems so that payroll deduction is done automatically at the end of the month, a very fast, convenient, and easy solution. The system allows workers to request as many advances per month as the company establishes.
As for companies, they do not have to make any changes to the payment process: the funds advanced by PayFlow are deducted from the salary for that pay period along with taxes, social security and any other adjustments such as vacation or bonuses. Companies are free to set rules and preferences to their processes, for example, limiting the amount to a maximum percentage of salary.
Payflow’s current clients include companies such as Scalpers, Covirán, Aristocrazy, and Vithas Hospitals, among others.
These are Payflow’s new investors
This new Payflow round has attracted well-known national and international investors. According to Avinash Sukhwani, co-founder of Payflow, “it is an honor to be able to count on the backing of our new top-level investors, and we are proud of the enormous satisfaction of our 100,000 users who have trusted our solution, which is free for them. We will continue our work to provide access to pay-on-demand flexibility to all employees in Europe and Latin America”.
Jacky Abitbol, Managing Partner of Cathay Innovation, has highlighted several reasons behind Cathay’s participation in the Spanish fintech’s latest fundraising. “We see the huge market potential of the Earned Wage Access sector, especially in Latin America, where there remains an impressive number of people underserved by traditional finance services. With impact investing at the core of our investment philosophy, we are confident in Payflow’s outstanding executive team to maintain their impeccable growth trajectory, thus delivering financial wellbeing to workers, so our global ecosystem is here to support them in that effort.”
(Featured Image by Mike Lawrence CC BY 2.0 via Flickr)
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