The technology and human resources startup acquired PayFlow Chile, the fourth firm added to its portfolio to complete the offer of its management platform.
After raising US$50 million and reaching a valuation of US$417 million last October, Buk, the Chilean startup that developed a platform to manage the human resources area of companies, announced the purchase of the FinTech, PayFlowwithin the framework of its growth strategy, which is added to the acquisition of Boost and Ninja Excel in November 2021 and marks its entry into the FinTech industry.
PayFlow Chile allows company workers to collect their salaries in a on demand, namely, that they can obtain advances of the days already worked, preventing them from getting into debt. The money is provided by the FinTech and at the end of the month, the company deducts the employee’s salary advance and returns it to PayFlow.
Santiago Lira, co-founder and development manager of Buk, explains that PayFlow will be integrated into software in order to expand the offer of the human resources platform. “With this new module, we are preventing people from having to take short-term loans. By anticipating the payment of part of the salary already earned by the worker, people can cover eventual economic requirements that, until now, they could only solve with a credit,” he says in a statement.
He explains that PayFlow, by putting the liquidity for the advance, means savings for the companies, because it does not they do not have to have human resources or cash to deliver them. The business model is based on charging companies a commission for each worker who uses the salary advance platform.
PayFlow Chile, which began operating in 2021, has more than 80 business clients and some 15,000 users. Among them, Falabella Retail, Desafío Levantemos Chile and Constructora Independencia.
Arturo Prado, co-founder of the firm together with Matías Vial and José Francisco Mendez, points out that 40% of the payroll of these companies has used the service and that each firm can define its own parameters to deliver the advances. “It is the companies that know their collaborators best, so no one better than them to determine percentages, limits and frequency of withdrawals that their workers can make,” he says.
Lira de Buk points out that paying salaries in this way could increase productivity, given that it is estimated that employees spend around three hours a week dealing with their personal finances. “LPeople are earning their salary day by day, so it seems natural to us that, in case of need, they can resort to this money, avoiding short-term debts”.
With the new module, Buk will also have financial education content that will seek to help people better manage their income.
PayFlow Chile thus becomes the fourth company bought by the startup of human resources and technology, and the third after the Series A investment round that the venture closed last October. Already had bought CTRL, attendance tracking firm, and last November acquired Boost and Ninja Excel, both specialized in providing training to workers.
Nevertheless, PayFlow is the first purchase that escapes the field of human resources. Buk’s platform already included several services in this sector, from payment of salaries and performance evaluations, to vacation requests and recruitment modules, but salary advances will be the first irruption of the entrepreneurship in financial services, and not only expanding its products, but also its market area.