SMEs face significant challenges in managing their human resources efficiently. They often rely on manual, time-consuming processes that hinder their ability to scale and make informed decisions. Factorial solves these problems by providing all-in-one HR software specifically designed for SMEs. The platform automates and centralises various HR tasks, including time tracking, shift management, document management, and absence management. “
Factorial has secured a non-dilutive $120 million from General Catalyst ( recently invested in Deel and Emidat) to boost its HR sales and marketing. This funding comes from GC’s “Customer Value” fund and is neither an equity investment nor traditional venture debt. Instead, it’s a non-dilutive loan that Factorial will repay from its cash flow, specifically from the gross profit generated by customers acquired through GC’s investment.
The additional $120 million increases General Catalyst’s total investment in Factorial from $80 million to $200 million, reinforcing its confidence in Factorial’s trajectory and unlocking new opportunities for accelerated growth. This approach aligns with CEO Jordi Romero’s distinct financial strategy. He prefers using limited liability debt over equity financing for customer acquisition. Romero confidently states that they “will never need an equity round again,” highlighting his faith in their business model and revenue generation capabilities.
This brings the company’s total funding to $219M, maintaining its $1B valuation, according to Dealroom data. Before this non-dilutive funding, Factorial completed four investment rounds: €500,000 in initial financing, €2.8 million in the second round, €15 million in the third round, and €67 million in the fourth round. The October 2022 Series C round of $120 million, led by Atomico with participation from GIC and existing investors Tiger Global, CRV, K-Fund, and Creandum, elevated Factorial to unicorn status. As of April 2024, the company retains approximately €100 million from this 2022 round.
The funding will fuel Factorial’s geographic expansion, particularly in Germany, France, and Italy, and further solidify its leadership in the business management software market. The company will also invest in product development and engineering to improve its offerings while building strategic partnerships to maintain its growth momentum.
Building an all-in-one HR software solution designed explicitly for SMBs
Factorial was founded in Barcelona in 2016 by Jordi Romero, Bernat Farrero, and Pau Ramon Revilla. The founders, experienced entrepreneurs themselves, created Factorial after struggling to find a suitable HR solution to streamline processes, reduce paperwork, and scale their business. The company now employs approximately 800 workers and operates under the slogan “Bet on people,” reflecting its mission to help organisations automate HR processes and enable data-driven decision-making.
The company aims to transform workplaces into positive spaces by automating and centralising administrative tasks, enabling businesses to focus on what truly matters—their people. The founders believe that solving HR administrative problems is the beginning of empowering businesses to develop and grow their teams. Factorial’s platform streamlines HR tasks such as time management, talent management, payroll, and finances, centralising operations to free teams from administrative burdens.
Factorial gained initial traction during the pandemic’s HR services boom with a free version that went viral, attracting over 60,000 users. After transitioning to a paid-only model, CEO and co-founder Jordi Romero reported sixfold growth in customers and revenues within a year, reaching 13,000 paying businesses. The company plans to leverage this momentum with its new funding.
Behind Factorial: high customisability that wins hearts
Factorial distinguishes itself with a fully integrated solution in a market shared with BambooHR, Personio, Rippling, and Workday HCM. Unlike competitors who rely on third-party integrations for applicant and time tracking, Factorial builds these features directly into its platform. The system delivers real-time analytics and custom reports, helping companies make data-driven HR decisions.
The platform delivers essential HR tools: information systems, recruitment and applicant tracking, onboarding, time and attendance tracking, payroll, performance reviews, learning tools, and comprehensive reporting.
Factorial’s key strength lies in its flexibility — companies can customise fields, workflows, and permissions to match their exact needs. The platform scales smoothly from small teams of 5 to enterprises with thousands of employees, serving diverse sectors from consulting and healthcare to real estate, technology, and manufacturing.
The company consistently updates its platform with new capabilities. Recent improvements include expanded time management options, better financial tracking tools, enhanced mobile features, and a more robust API for system integration.
With mobile access and support for multiple languages and currencies, Factorial effectively serves global teams. These capabilities, plus its intuitive interface and competitive pricing, have attracted over 11,000 companies across more than 60 countries as of 2025. A recent partnership with Microsoft to use Azure OpenAI has strengthened Factorial’s market position, combining enhanced security with AI-powered insights.
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