• Salary-on-demand startup Payflow added €400,000 to its Seed round via a strategic investor trio including Wayra.
  • Wayra family grows but with scaleups now in the crosshairs.

Payflow banks Wayra backing

Payflow banks Wayra backing

Source: Mika Baumeister / Unsplash

Spain based on-demand salary payment service Payflow earned backing from Telefónica innovation hub Wayra.

Wayra España joined Caixa Bank’s venture capital (VC) fund zone2boost and Silicon Valley-based VC Plug & Play in adding a combined €400,000 to a €1.6m Seed funding round that opened in July 2020. The partners all follow a strategy of minority investment targeting startups with perceived scaleup potential.

Payflow offers users the option to access income before payday, which it claims has seen in growing demand during various lockdowns across the world in the past year. To Marta Antúnez, Director of Wayra Barcelona, it is a “growing trend” that marks “an important step in the digitisation of companies”.

Wayra joins previous investors including Barcelona startup network Itnig, fellow Catalonian VC Lanai Partners, and Berlin-based incubator Rocket Internet.

Payflow was founded in early‑2020 in a bid to provide greater income flexibility to employees and increase trust in the employer‑employee relationship. It entered a market already populated by fellow Plug & Play investment NowPay, which received €1.75m in its October 2020 Seed round. Payflow should not be confused with the UK-based payroll-as-a-service startup of the same name.

Wayra España family grows

Payflow appears to be the first investment of 2021 for Wayra España, after five startups entered the fold in 2020 — down from nine in 2019.

Investment figures for 2020 have not yet been formalised, but it averaged €150,000 per startup in 2019.

In 2020, Wayra also expanded its Spanish footprint to a third city, Valencia, via a partnership with local accelerator Lanzadera. This partnership grants startups access to Lanzadera facilities in Valencia, and vice‑versa for Wayra’s Barcelona and Madrid hubs (Telefónicawatch, #148).

Wayra España investments, 2020
StartupFocus
Source: Wayra.

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