My big idea: PayFit payroll

‍Hi Firmin! What's your elevator pitch? ‍

Launched in 2016, PayFit is a tech company offering a payroll and human resources management solution. By offering automated payroll management in real time, PayFit reduces errors, frees up time and promotes autonomy for small businesses and their employees. With operations in three countries (France, Spain and the UK), PayFit currently employs over 700 people in Europe, supporting 18,000 entrepreneurs, VSEs and SMEs in the management of their payroll and human resources. 

‍Why does the market need it?

In France in particular, payroll is very complex. Payslips are difficult to understand and, when done the traditional way, the processes involved require a certain degree of expertise. PayFit sought to change all of that, bringing the time spent managing payroll down to a few hours and several clicks each month. We wanted to help payroll novices (entrepreneurs and emerging people managers in small businesses) be able to pay their people with confidence.

It’s the same goal in our other markets and, while payroll might not be quite as complex, there are certainly regulatory hoops to jump through. PayFit automates all of that - including calculations, annual rate changes, pensions, reporting, and removes the jeopardy of making incorrect filings or payments to regulatory bodies.

Where is the business today?

We employ more than 700 people across offices in Paris, London and Barcelona, with more than 18,000 customers using PayFit on a daily basis. That’s 250,000 employees being paid and managed (and using) PayFit.

‍What made you think there was money in this?

Almost 10 years ago, I co-founded PayFit with Ghislain and Florian, with a simple but ambitious idea: to make payroll accessible to entrepreneurs and small businesses.

I was 22, didn't have a degree, and had a strong conviction: payroll shouldn't be an administrative headache, but a fluid, comprehensible tool.

In 2015, payroll was a closed world, dominated by software designed for accountants. I wanted to break this monopoly and empower entrepreneurs and people leaders within small businesses.

We didn't just do it better, we did it differently: with technology that radically simplifies payroll management, and an interface designed for non-experts.

What's your biggest strength?

The combination between payroll automation that comes with our product/technology and payroll expertise that comes with our support/service.

‍What is the secret to making the business work?

We put the concept of ‘people-first’ - that applies to both the businesses we serve, and their people, as well as ours. This is because we understand that the very reason businesses come to PayFit is to improve processes and outcomes for their people. We’re proud to offer some of the best employee benefits in the market to our staff, so we find that they stay with us for much longer, and do great work for us. Encouraging this people-first approach fosters an environment of collaboration, support and commitment within PayFit, and from ‘PayFiters’ towards our customers.

And when it comes to our customers, providing them with the best tools to succeed, a solid learning and support platform, and payroll experts on hand to help when needed, gives them the reassurance and support they need to continue working with us (we experience low customer churn rates).

How do you market the company?

We have a solid promotional mix - split between outbound and inbound sales, with sales enablement support to help the former flourish. And they are supported by multi-functional marketing teams across our three markets, with specialised local knowledge in each. This allows us to really understand what it takes to penetrate each market. Again, it comes down to the concept of ‘people’, and we are fortunate to have incredibly talented sales, marketing and PR teams that have a passion for promoting the PayFit story, not to mention being able to call on our payroll experts and ExCo leaders when needed to further hone the knowledge required for connecting with our prospects.

What funding do you have? Is it enough?

We’ve undergone several successful funding rounds since our inception, the last of which provided us with over £200m in 2022. This enabled us to invest in the best talent, develop best in class payroll and HR software, and invest in the right marketing channels to accelerate growth. However, these high levels of investment also meant that we weren’t profitable, which was an issue. The funding has helped us achieve the bandwidth to be able to slow down our rate of growth, re-assess the foundations of the business, and ensure that we are set up for long-term success. With very careful and data-driven forecasting, we are able to know exactly how much cash we have in the bank, how long this will last given our current spending trends, and when we will become profitable again. Of course you always want more when it comes to funding, but we are on the right trajectory towards profitability, something that many in our sector cannot say.

Tell us about the business model

Our payroll business model is quite well established in the market - our clients pay a monthly fee that depends on their headcount. We offer different plans, with varying degrees of payroll and HR features and support.

What were you doing before?

I created PayFit when I was a student and I quit school to found the business. I had no previous professional experience as I started PayFit when I was 22. I’ve always known that I wanted to become an entrepreneur and to drive a positive impact around me.

What is the future vision?

My vision of the future is a professional world where technology and human expertise are combined to boost both businesses’ productivity and human fulfilment. That's the mission we pursue at PayFit.