In brief
Factorial closed a $150 million round led by General Catalyst, with Atomico and Four Rivers also participating, reaching a $2.5 billion valuation.
General Catalyst committed $540 million through its Customer Value Fund, bringing total non-dilutive capital to over $700 million alongside a previous $200 million facility.
The company has rebuilt its product around AI agents, moving away from a traditional fixed-screen SaaS model to an agent-based architecture.
Factorial will use the new capital to acquire competitors and adjacent products, with Germany as the priority market alongside Spain, France, Portugal, and Italy.
The customer base has more than doubled from 7,000 at the time of the 2022 Series C, with headcount now exceeding 1,700 employees.
- 1 OctSeries C: $120m led by Atomico, valuation reaches $1bn (unicorn status)
- 31 DecRevenue reaches €39.8m with net loss of €33m (per commercial registry)
- 3 JunSeries D: $150m led by General Catalyst, valuation reaches $2.5bn
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.
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.”