The Spanish fintech payflow, based in Barcelona, has raised $9.1 million (about 8 million euros) in a Serie A, according to the
The round had as investors both Spanish and foreign actors, among which stand out Seaya Ventures, Cathay Innovation, Force Over Mass Capital, YCombinator and Rebel Fund. Thanks to this new economic injection, the Spanish company has raised its value to 13.6 million dollars (about €12M) since its launch in January 2020.
The objective that Payflow has in mind after receiving this injection is to create a super app that will seek to fulfill the ambition that the company has of position itself as a neobank during this 2022, with tools aimed at both a B2B and B2C market. In addition to strengthening its position in Spain, these resources will allow Payflow to accelerate its expansion in Chile and Colombia, where you just entered. In addition, it has already begun to carry out tests with a view to entering two other markets: Italy and Portugal.
What is Payflow
Payflow is a founded in February 2020 by Avinash Sukhwani and Benoît Menardo and launched in April of that same year, whose main objective is allow employees to collect the fraction of their salary that they have already worked anytime and without the need for companies to have cash flow, betting on simplicity and ease in payroll settlement processes.
Without resorting to credits or microcredits, Payflow advances the payroll in one click and deposits the money directly into the employees’ bank account, helping them deal with unforeseen: a service at no cost to employees. Payflow charges employers a fee based on the number of employees using the product.
Also, Payflow aims to differentiate itself from other new companies that have emerged around the management of employee compensation.
“We are different from other pay-per-use companies because we do not charge an employee to use the service (we are the first real benefit for the employee, the company pays in full)”says the co-founder of Payflow, Avinash Sukwani.
For his part, the also co-founder of the company, Benoit Menard, assured that “Payflow is free for users and always will be. 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, It increased in productivity and motivation for the companies
The exact moment when employees can withdraw their money will depend on the rules established by each company, but can usually be removed as soon as work is complete or approved in case an approval is required.
Money can reach users in minutesand its system is integrated with those of the company so payroll deduction is done automatically at the end of the month, a very fast, comfortable and easy solution. The system allows workers to request as many advances per month as the company establishes.
As soon as the companiesthey do not have to make any changes in the payment process: funds advanced by PayFlow are deducted from the salary for that pay period along with taxes, social security and any other adjustments such as vacations or bonuses. Companies have the freedom to establish rules and preferences for their processesfor example, limit the amount to a maximum percentage of salary.
Among Payflow’s current clients, companies such as Scalpers, Covirán, Aristocrazy and Vithas Hospitals, among others.
These are the new Payflow investors
This new Payflow round has managed to attract recognized national and international investors. According to avinash sukhwanico-founder of Payflow, “It is an honor to be able to count on the support of our new first-rate investors, in addition, 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 give access to pay-on-demand flexibility to all workers in Europe and Latin America.”
Jacky Abitbol, Managing Partner of Cathay Innovation, has highlighted several reasons that motivated Cathay’s participation in the latest fundraising of the Spanish fintech. “We see great market potential for the Access to Earned Wages sector, especially in Latin America, where there continues to be an impressive number of people underserved by traditional finance services. With impact investing at the core of our investment philosophy, we trust Payflow’s outstanding executive team to maintain its impeccable growth trajectory, thus bringing financial well-being to workers, so our global ecosystem is here to support them in that effort.”
For her part, the CEO of Seaya Ventures, Beatrice Gonzalez, considers that “Wage on demand is a global trend. In a few years, everyone will earn their salary on demand. Payflow really impressed us and we believe that Avinash, Benoit and the rest of the team are the best people to drive the company forward in Spain and Latin America given their strong vision and shared values.”
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