Factorial Secures $120 Million from General Catalyst to Expand

The Barcelona-based company Factorial secured $120 million from the American venture capital firm General Catalyst. The deal represents an expansion of a previous agreement settled last year, raising the total investment to $200 million, for geographical expansion.

According to the press release shared by the Spanish unicorn—which achieved this status in 2022—, the new investment solidifies a strong partnership, driven by Factorial’s 2024 results.

The company, founded in 2016, plans to expand to Germany, France, and Italy as part of the next phase of growth, leveraging its rapid adoption.

“From our perspective, it’s rare to see a company grow as fast and efficiently as Factorial did in 2024,” said Pranav Singhvi, General Catalyst’s Managing Director. “Their ability to scale sustainably while staying at the forefront of innovation made this an easy decision for us.”

Factorial has evolved from an HR software company to a business management platform as it has included new services and new technologies such as artificial intelligence processes, as reported by the Spanish newspaper El País.

The company reached over 13,000 clients in 2024 and expects to reach 20,000 this year. Its CEO and co-founder Jordi Romero explained that to boost growth they’ve been hiring up to 50 new employees per week, expanding its team from 900 to 1,300 workers.

“Factorial’s efficient and predictable growth enables us to pursue ambitious expansion without diluting our shareholders – making us a rare company that is both hyper-growth and financially sustainable,” states Romero in the press release.

The company’s fastest-growing market at the moment is Germany, where customers seem to appreciate its all-in-one platform the most.

Factorial is not the only Spanish unicorn expanding recently. In January, the business travel company TravelPerk raised $200 million—reaching a $2.7 billion valuation—to accelerate growth, develop its technology, and expand to the United States.