Payflow Funding News -Madrid-Based Payflow Raises €10 Million Funding Round

This round included both primary and secondary investments, with Cusp Capital as the sole investor. Cusp Capital now holds the largest share in Payflow.

So far, Payflow has raised €24 million in equity and €27 million in debt funding, 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.”

With the app, users can access their earned salary anytime, save money through a virtual piggy bank, get financial tips, and enjoy flexible benefits.

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Payflow is already a top player in Spain and Latin America, serving over 1,000 clients, including 11 of the 60 biggest employers in Spain. The company is now growing across Europe, with well-known customers like Lidl, Mango, Decathlon, and Five Guys.

“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 helps employees manage their money better by giving them more control over when they get paid. This leads to smarter spending and improved financial health. For companies, it reduces employee turnover by about 21%, resulting in a strong return on investment—more than 20 times.

Payflow recently added a new product called Flexflow. It's a Mastercard that offers flexible benefits, letting employees save on taxes when spending on things like food, transport, or childcare. They spend directly from their gross salary, which lowers their income tax. Flexflow is growing quickly and now makes up nearly 15% of Payflow’s revenue.

Despite having fewer than 50 employees, Payflow brings in over €6 million in revenue, with an average EBITDA of -10% over the past six months. With its current spending rate, the recent funding round gives the company at least 7 years of financial 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%”

Payflow’s co-founders said they plan to stay focused and will use most of the new funds to grow further 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.”

About Payflow

Payflow, launched in 2020, is a B2B SaaS platform that employers pay for with a fixed monthly fee. Employees get to use the app for free.