Saturday, November 27

Payflow enters the accelerator ‘Y Combinator’: it plans to close 2021 with 100,000 users

With a gray sweatshirt (and from left to right), Benoît Menardo and Avinash Sukhwani, co-founders of Payflow, together with their team in Barcelona.

With a gray sweatshirt (and from left to right), Benoît Menardo and Avinash Sukhwani, co-founders of Payflow, together with their team in Barcelona.

Payflow, a Spanish startup that has developed a solution for workers to request a payroll advance, has completed its passage through the last summer edition of the Silicon Valley accelerator ‘Y Combinator’ (YC), which it has just completed. An experience that it shares with other Spanish companies such as SolarMente or Arengu, and to which only 377 companies have accessed of the more than 25,000 that applied, from 46 countries around the world.

“We had doubts about submitting our application and in the end we made a ‘late application’,” he details Avinash Sukhwani, co-founder of fintech together with Benoît Menardo. As he explains, although this could be an obstacle when it comes to being accepted into the program, on June 12 they received confirmation and immediately had to get down to work. “The batch (or batch, which is how each of the calls or editions is called) began the following Monday, June 14. All startups began the program that same day, with a talk from Paul Graham, founder of the accelerator “, remember.

Payflow was launched in April 2020 with the goal of simplifying the management of payroll advances. Through an app and an online platform, the startup acts as an intermediary between the worker and the employer, respectively. It allows the employee to request the advance payment of the salary earned and collect the part generated up to that moment at any time of the month. For example, if the salary is 1,000 euros per month, on the 15th you can request the corresponding 500 euros. In the case of companies, the fintech is in charge of integrating its panel in the cloud with the payroll software used (Sage, PayFit, SAP, Meta4 …) and making the pertinent adjustments.

The service is free for the worker while the cost to the company pays a fixed price per employee, regardless of the number of transactions.

More than 150 clients

This SaaS (software as a service) formula has already attracted more than 150 clients in Spain, among which are Coviran, Camper, Isdin or Aristocrazy, and has more than 40,000 users. In the words of Sukhwani, “despite being founded in the middle of the pandemic, we are used to growing exponentially. In fact, there has not been a month in which we have not grown faster than the previous month.” With this trajectory in recent months, and the contacts they are maintaining with “many of the largest companies in the country”, the goal they have set is “to end 2021 with more than 100,000 users on the platform”says the co-founder. In addition, they have already started with international expansion, starting with Latin America.

The fintech, which has already completed the program, participated in the 33rd ‘Demo Day’ of ‘Y Combinator’, thus becoming one of the eight Spanish startups that have come to attend the event. More than 2,800 globally recognized investors such as Sequoia, Index, Softbank or Accel attended, and Payflow received more than 250 requests from interested investors. Now, the company is “filtering the list to find the investors that best suit our project and our ambitions,” Sukhwani details, adding that “a lot of interest has been created and we are fortunate that we will be able to choose to be able to find the right partners. ”

The capital injection is the great prize of this renowned acceleration program, although it is not the only one. ‘Y Combinator’ is presented as a unique opportunity for the development of companies in the growth period, so that they can consolidate. Therefore, in the three months that the process lasts, the participants receive advice, training and mentoring from the founders of companies such as AirBnb or Dropbox to validate the business model or, depending on the proposal, turn towards more efficient strategies.

“In our case, we have not made any changes because partners were impressed with the level of ‘product-market fit’ (process by which a company defines what its target audience will be and estimates the potential demand) that we have. Specifically, more than 40% of employees use our application repeatedly to collect every month, “says Avinash Sukhwani. In addition, he says, the accelerator has helped them to create” a very strong global network, we are now connected with more than 400 founders “of companies around the world.

“Throughout the program, YC partners have pushed us to be even more ambitious and to think about putting together something very big. We certainly believe that our growth will be faster thanks to what we have learned,” acknowledges the co-founder of Payflow. “We believe that there will be a before and after our participation in ‘Y Combinator’“, he concludes.

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