Spanish FinTech startup Payflow, a mobile app that allows employees to get paid whenever they want, has just closed an equity financing round of €10 million in primary and secondary investments.
Cusp Capital was the only investor to participate in this round allowing Cusp Capital to become the investor with the highest stake in Payflow going forward. Total equity raised now stands at €24 million, plus €27 million in debt financing (including €20 million from BBVA Spark).
“Cusp Capital shared our belief in sustainable scaling and not growth-at-all-cost. With a steady burn rate under €100k/month, we’ve attracted investors who value efficient execution and being EBITDA positive,” said Avinash Sukhwani, Co-founder of Payflow. “We were hugely oversubscribed in this round, with 4x more capital on the table than what we were looking for, we chose Cusp Capital for their strong conviction in our model and our sustainable growth strategy.”
Founded in 2020, Payflow is a B2B SaaS solution offered to employers for a fixed monthly fee, while employees can use the benefit free of charge. Through their app, users can access their earned salary, save with an automated virtual piggy bank, receive financial education, and enjoy the advantages of Flexible Compensation.
The company looks to be a market leader in Spain and Latin America, with over 1.000 clients and “11 out of the 60 largest employers in Spain“, and is currently expanding internationally across Europe. Its client base includes brands such as Lidl, Mango, Decathlon, Five Guys, and many others.
“We were impressed by the vision and current execution capabilities of Payflow. The commercial momentum and high social impact is an outstanding value proposition and positions Payflow as the leading Earned Wage Access player in Europe,” says Christian Winter, General Partner at Cusp Capital. “As part of one of our investment theses, we invest in digital products for lower-income consumers and workers, a group often overlooked by mainstream solutions. Payflow is built exactly for this audience, which is one of the reasons why we see strong growth potential.”
Earned Wage Access reportedly gives employees greater control over their expenses, enabling more responsible spending and improving their financial wellness. For companies, the solution reduces employee turnover — by an average of 21% — leading to a notable Return on Investment (>20x).
In addition, Payflow more recently launched a second product: Flexflow. This product known as flexible benefits is a Mastercard card that allows employees to save money by spending tax-free on certain categories (e.g., food, public transport, kindergarten, etc.).
More specifically, employees spend directly from their gross salary instead of their net salary and therefore save on income tax. This is Payflow’s fastest-growing product and already represents almost 15% of the company’s revenue.
With fewer than 50 employees Payflow generates already more than €6 million in revenue, with an average EBITDA of -10% over the past 6 months. In addition, with the current burn rate, this round gives Payflow at least 7 years of runway.
Benoît Menardo , Co-founder of Payflow, adds: “We grew 70% in 2024 and our EBITDA is only marginally negative, this means we are performing very well in the Rule of 40 metric, consistently being above 40%”
The Co-founders of Payflow mention that they plan to stay focused and use the vast majority of the proceeds to go deeper in Spain, Portugal, Colombia, and Peru.
Sukhwani explains, “Right now, we’re just scratching the surface. In Spain, for instance, with 70,000 downloads, we’re reaching only 0.3% of the 21 million working population. This is just the beginning and we are excited to be working on a market with such high potential to go deeper.”
Menardo complements this saying “what makes Earned Wage Access most complex is technology – this is because it requires partnerships with HR and payroll software. These markets are highly fragmented and therefore partnering with these software providers creates enormous entry barriers. Now that we have built integrations with 60+ software and that we cover 99%+ of payslips in these four markets, we need to leverage these technological moats and strengthen our position as the #1 player in all four markets.”
Read the orginal article: https://www.eu-startups.com/2025/06/madrid-based-payflow-raises-e10-million-to-expand-their-earned-wage-access-platform-across-europe-and-lam/
