Flexible salary fintech Payflow announced it has raised a €6 million funding round to continue growing in Spain, Portugal, and the Latam markets of Peru and Colombia. The round was led by previous investors Seaya Ventures, Cathay Innovation, 6 Degrees Capital and Wayra. But also the fintech added new names to its cap table: US-based Thomson Reuters Ventures, and Spain-based GED Conexo Ventures. Payflow aims to achieve profitability with this new capital increase and its plans to deepen its market presence in the next five years.
Founded in 2020, Payflow allows workers access to salaries already earned. The startup already has 1,000 clients in Spain who come from companies such as Telefónica, Quirón, Decathlon, Alsa, Alcampo and Ilunion. The Barcelona-based fintech is generating more than €4 million of recurring annual income.
Benoît Menardo, co-founder of Payflow, said to the Spanish media: “The investment market is looking for efficient startups now, which is why we have become the best in terms of financial efficiency. We are still growing more than 100% year-on-year, but we no longer need external financing to maintain these rates of growth.”
Avinash Sukhwani, also co-founder of Payflow, added: “Since our last round, we have signed many agreements, including exclusivity, with payroll software. This has given us an incredible competitive advantage and has practically allowed us to eradicate all the competition we previously faced. Additionally, we became the only provider in the benefits segment to offer both on-demand pay and flexible benefits, the two most popular employee benefits among blue-collar workers.”
In September 2023, Payflow also signed a financing agreement of up to €20 million with BBVA Spark.
“We are excited about the execution of the Payflow team and the exceptional growth of the business,” said Tamara Steffens, managing director of Thomson Reuters Ventures. “We see many possible opportunities with Thomson Reuters, especially in Latin America, where we have an expansive presence.”
Damien Balsan, co-founder of Conexo Ventures and partner at GED Capital-Conexo, added: “Payflow is at the center of our investment thesis of Spanish B2B SaaS startups with American roots (Y Combinator) that can scale from their initial traction in Europe to Latin America, solving real problems such as the inaccessible credit rate for blue-collar workers, which exceeds 100% annually in some cases.”
