Two former Luko employees have secured €25 million in funding for their startup, Payflows, which focuses on automated financial management.
Balderton Capital led the Series A round, with participation from existing investors Ribbit Capital, Headline, 20VC, and French shopping mall Galerie Lafayette’s family office.
Co-founders Pauline Glikman, previously VP of operations at Luko, and Joseph Assouline, who led machine learning operations at the recently-acquired French insurtech, began working on Payflows in 2022. The funding includes Payflows’ seed round, which was previously reported to be around $5.5 million in a seed round co-led by Ribbit Capital and Headline.
Payflows aims to simplify financial management for company CFOs, who often struggle with using multiple systems for tasks such as treasury management, procurement, and cash collection. Glikman notes that existing software solutions are often complex and designed primarily for accountants, making them difficult for other employees to understand.
The platform integrates with companies’ existing accounting systems, rather than requiring them to adopt entirely new infrastructure. Companies pay a subscription fee based on their size and the modules they choose. Payflows targets SMEs with over 400 employees and has already attracted twenty clients.
The funding round reflects a growing trend in fintech, with increasing investment in B2B solutions for CFOs. Notable examples include Madrid-based treasury management startup Embat and France-based procurement automation software Pivot. European fintechs catering to business clients raised $2.1 billion in the first quarter of this year, nearly double the amount raised by consumer-focused fintechs.
The investment will primarily support Payflows’ international expansion, including plans to open a UK office by the end of the third quarter and enter the US market. Glikman emphasizes the importance of being US-ready and indicates that a significant portion of the funding will be allocated to this goal.
Source: sifted.eu
