The 'fintech' Payflow raises 6 million to get closer to profitability

Payflow's on-demand salaries continue to reach more workers. The startup has just closed its third financing round, worth 6 million euros. Its main investors, Seaya Ventures, Cathay Innovation, 6 Degrees Capital, and Wayra, participated in the operation, but new ones have also joined, such as US-based Thomson Reuters Ventures and Madrid-based GED Conexo Ventures.

The resources obtained in this round are intended to help the Barcelona-based company continue growing in the markets where it operates: Spain, Portugal, Colombia, and Peru. Previously, it had been present in Chile. It will also allocate the 6 million euros to approaching profitability, without specifying a timeframe.

The fintech was born in the midst of the pandemic, in March 2020. Despite the context of economic paralysis, it closed its first round a month later, for an amount of two million euros. Its second round, for a ticket of eight million euros, came in early 2022. The US accelerator Y Combinator also participated in the first two rounds, but has not done so in the current transaction. In addition to the rounds, the company has been financed through debt, with 20 million euros acquired through BBVA Spark and other debt investors.

Payflow's proposal consists of allowing workers to collect part of their salary before the end of the month. The advance is managed through a mobile application, which also provides financial advice and savings methods, and a cloud platform that integrates with the payroll software. According to the startup, offering this option to a company's employees helps reduce worker turnover and improve their productivity. Some of its clients include companies such as Telefónica, Quirón Salud, Decathlon, Alsa, Alcampo, and Ilunion.

Founded four years ago in Barcelona by Avinash Sukhwani and Benoît Menardo, the company has a workforce of 40 employees. This is a slightly lower figure than it had when it closed its second round in 2022, when it had 45 employees.