Factorial raises another $120 million from General Catalyst

Factorial, the Catalan business management platform that achieved the title of unicorn –companies valued at over €1 billion– has now closed an extension of its investment agreement with General Catalyst in October 2022 to consolidate its position as the leading business management software in Europe. Specifically, Factorial has raised an additional $120 million investment from General Catalyst, bringing the total funds received to $200 million and accelerating the company's next phase of expansion.

With this additional investment, Factorial aims to increase its client portfolio and continue to grow exponentially. "We started with General Catalyst about a year ago with an investment of $80 million, but now we've expanded it to another $120 million because it works very well with our growth format; it's great for growing our client portfolio without consuming our own resources and also for not requiring traditional rounds, which dilute our partners at Ro" A.

The company is also interested in further acquisitions of companies that could complement its business. "One of the reasons we wanted to increase capital is because we want to invest in acquiring companies," Romero told ARA. "We look at opportunities every week; we've already had conversations with some of them, but nothing is finalized yet; the goal is to end the year having acquired a couple of companies," he explains.

Objective: Revenue of €1 billion

Factorial's growth in recent years has been supersonic. This year, the company expects to surpass €100 million in revenue, driven primarily by its growth in Germany, France, and Italy. This progress is largely due to the launch of new solutions within the platform, transforming itself from being a human resources platform—the essence with which it was born—into a comprehensive business management platform, also offering expense management, training, and so on. However, their medium-term objective is clear: "With the cash flow we have, we see the path to €1 billion in revenue in Europe, and our goal is to reach 100,000 client companies and more than 10 million employees in the medium term," explains Romero. "We are fortunate that the problem that sol."

To sustain this accelerated growth, Factorial is adding up to fifty new employees per week. The company currently employs around 1,100 people, but after massive hiring, they expect to stabilize at 1,350 this year, with new professionals in all areas. They also don't rule out expanding into new markets: "We're looking at neighboring countries," the CEO says, although he declined to provide further details.