Factorial closes $150m Series D at $2.5bn valuation, pivots from SaaS to AI agents
The Barcelona-based HR tech platform raised $150 million in a round led by General Catalyst, which also committed an additional $540 million in non-dilutive capital to fuel an AI-driven expansion across Europe.
The funding round
Barcelona-based Factorial has closed a $150 million Series D funding round, valuing the company at $2.5 billion. The round was led by US venture capital firm General Catalyst, which takes a direct equity stake in Factorial for the first time, with participation from existing investors Atomico and Four Rivers. The founders sold approximately 6% of the company in the transaction.
We are not doing a capital increase because we need it — we have been sustainable for more than two and a half years — but because we believe there are opportunities to invest and grow even more.
Non-dilutive capital
Alongside the equity round, General Catalyst committed up to $540 million through its Customer Value Fund, a non-dilutive financing instrument whose return is tied exclusively to the value generated by customers acquired with that capital. This brings total non-dilutive capital committed to over $700 million, adding to a previously agreed $200 million facility that had not been fully drawn.
The AI pivot
Factorial is repositioning itself from a traditional SaaS company to what CEO and co-founder Jordi Romero calls an "AI-first" business. The company has rebuilt its product, architecture, and customer workflows around AI agents that handle HR tasks such as expense management, payroll processing, performance evaluation, and even device configuration. Romero noted that the investment market is currently confused and cautious about who will end up on the right or wrong side of AI disruption.
Ten years ago we built Factorial as a SaaS company. Today we are an AI-first company: we develop agents for our clients and we already do so for more than 16,000 companies in Europe, with the discipline that defined our first decade.
Growth and expansion plans
The company serves more than 16,000 businesses across over 90 countries and is hiring around 50 people per week, with headcount now exceeding 1,700. Factorial plans to use the new capital primarily for inorganic growth through acquisitions of competitors and adjacent products, particularly in Europe. Germany is the priority international market by growth rate, and the company is also focused on Spain, France, Portugal, and Italy.
- Series C: $120m led by Atomico, valuation reaches $1bn (unicorn status)
- Revenue reaches €39.8m with net loss of €33m (per commercial registry)
- Series D: $150m led by General Catalyst, valuation reaches $2.5bn
Financial trajectory
Factorial last raised a $120 million Series C in October 2022, led by Atomico with participation from Singapore's sovereign wealth fund GIC, Tiger Global, CRV, K-Fund, and Creandum. That round valued the company at $1 billion, giving it unicorn status. According to the most recent data from Spain's commercial registry, Everyday Software SL — Factorial's legal entity — reported revenue of €39.8 million in 2024 and a net loss of €33 million. The company expects to reach net profitability in the coming years, though the exact timeline depends on acquisition activity. An IPO is not ruled out for the future, but the current focus remains on growth through acquisitions.
This round does not close a chapter: it opens the one that really matters.
