Factorial, a European scaleup of Spanish genesis that has created the all-in-one platform that supports SMEs around the world in business and human resources management, announces that it has closed an investment of 80 million dollars by General Catalyst, a venture capital firm based in the United States. This funding comes after Factorial closed a $120 million Series C in October 2022, heavily overwritten and led by Atomico.
Factorial, as a SaaS company, invests cash in selling its product to new customers and growing its business. Thanks to General Catalyst’s investment, Factorial can accelerate development without affecting the balance sheet or diluting existing shareholders, financing part of the costs with the investment and without burdening the company, since General Catalyst holds the relevant risk.
This latest liquidity injection strengthens Factorial’s position to continue its current growth trajectory, the financial strengthening not only preserves equity, but also enables strategic investments in product development and design. As a result, Factorial can accelerate the delivery of high-quality products to its customers.
The Italian market
In Italy, Factororial has recorded a growth that has tripled year on year and is present throughout the country as a partner and ally of Italian SMEs from 15 to 500 employees in sectors ranging from manufacturing to tourism, up to the most innovative startups, such as Unobravo, Casavo and Roboze. The solutions that most of all in Italy, in previous years as well as in the first months of this 2024, have welcomed the favor of human resources employees are the functions of hiring staff, time and attendance, requesting holidays and permits and talent management.
With this new investment, Factorial aims to exponentially grow its partnerships and integrations, strengthening its position as the go-to platform for HR and business management solutions in the Italian market.
“We are one of the fastest-growing software companies in Europe, so we wanted to be able to maintain our growth trajectory without the need for a funding round. This partnership with General Catalyst is exactly what we were looking for. We can focus on making great products and supporting more customers without worrying about fundraising,” Jordi Romero, CEO and co-founder of Factorial, said in a statement . General Catalyst is one of the most trusted tech investors in the world, and this has made the process very easy. In particular, it is a company that understands the quality of the business and the market.”
“Having known the Factorial team for years and having seen their growth and the performance of their customers, General Catalyst has chosen to invest strategically and enhance the company’s ability to reach the market. This decision is in line with our goal to identify and support innovative initiatives with a substantial impact on the industry,” adds Pranav Singhvi, Chief Executive Officer of General Catalyst.
“We think sales and marketing financing is a game-changer for Factorial. With General Catalyst, we will be able to accelerate our customer acquisition efforts in a capital-efficient manner, thereby ensuring sustainable and rapid growth and effectively doubling the return on equity for our investors,” says Factorial’s CFO, Moran Laufer.
“This investment is a strong testament to the resilience and high quality of the business, as well as the go-to-market engine, that Jordi, Bernat and the Factorial team are building and is further confirmation that Factorial is emerging as a leading European technology company,” says Atomico partner Luca Eisenstecken, who led the previous Series C funding and joined Factorial’s board of directors as part of that round.
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