Barcelona-based financial wellness app Payflow, which helps employees get paid and access flexible benefits, has secured €6 million in an equity fundraising round. The total equity raised is €17 million, with the total funding, including €20 million in debt from BBVA Spark, reaching €37 million. The investment will enable the startup to expand its operations in Portugal, Latin America, and Spain.
- Founded in 2020 by Benoit Menardo and Avinash Sukhwani, Payflow develops a financial wellness app designed to enhance employees' working lives. The app offers a unique social benefit: a salary-on-demand feature that provides immediate access to earned wages. This not only benefits workers, but also positively impacts their companies, contributing to a more supportive work environment.
- To date, the startup serves over 800 companies and 500,000 employees across four countries: Spain, Portugal, Peru, and Colombia. Payflow reports a 20% increase in productivity, a 38% boost in motivation, a 20% reduction in employee turnover, and a 52% improvement in financial well-being.
Details of the deal
- The investment was backed by Madrid-based VC Seaya Ventures, which supports tech founders in Europe and Latin America, and California-based Cathay Innovation, which manages $1.5 billion in assets and has offices in San Francisco, New York, Paris, Berlin, Shanghai, Beijing, and Singapore.
- 6 Degrees Capital, Wayra, London-based VC Force Over Mass , and new national and international names like Thomson Reuters Ventures and GED Conexo also contributed to the investment.
- The investment will enable Payflow to further expand its operations in existing markets, including Spain, Portugal, Colombia, and Peru, and achieve profitability.
“In today’s world where fundraising is an order of magnitude harder than it was, we believe that building a healthy company is what is most rewarded by the market,” co-founder at Payflow, Benoit Menardo, stated.
