Barcelona-based Factorial, an all-in-one business and HR management software for SMBs announced Thursday that it has secured an $80M (approximately €75M) Go-To-Market investment from General Catalyst’s Customer Value strategy.
To support its continued growth until it becomes cash-generative with minimal constraints on the balance sheet, the company has secured additional financing.
In October 2022, Factorial achieved unicorn status after raising $120M in a Series C round, which still leaves the company with over $100M in the bank.
Fund utilisation
The Spanish company will use the funds to advance its growth trajectory and make strategic investments in product development and engineering.
“We think the sales and marketing funding is something of a game changer for Factorial. Thanks to General Catalyst, we will be able to accelerate our customer acquisition efforts, in a capital-efficient manner, thereby ensuring sustainable fast-paced growth while effectively doubling the return on equity for our investors,” says Factorial’s CFO, Moran Laufer.
Factorial, a SaaS business, typically invests upfront cash to sell its product to new customers and grow its business. Although this investment is profitable over time, it creates a near-term cash outflow for Factorial.
“As one of the fastest-growing software companies in Europe, we wanted the ability to keep our growth trajectory without ever needing an equity round. This partnership with General Catalyst is exactly what we were looking for. We can focus on building great products and helping more customers without worrying about fundraising”, says Factorial CEO and co-founder Jordi Romero.
Through General Catalyst’s investment, Factorial can accelerate growth by financing parts of those costs without putting a dent in its balance sheet or diluting existing shareholders.
Factorial: Helping SMEs globally
Founded in 2016 by Jordi Romero, Bernat Farrero, and Pau Ramon, Factorial aims to enable SMBs globally to make better people decisions based on data and increase data-driven insights.
By automating and centralising processes such as recruiting, onboarding, absence management, payroll, and time tracking, Factorial claims to help companies reduce up to one week of repetitive, administrative tasks per month.
By consolidating all HR functions under one roof, Factorial claims that its offering makes every HR feature 10x more powerful and 10x more seamless (instead of a complex suite of multiple tools, platforms, and features).
For instance, having time tracking automatically connected to compensation, performance management, and payroll becomes easy when all the features are in the same SaaS platform.
The company’s customer base has increased from 70 to over 10,000 since 2019 across nine countries.
The investor
General Catalyst is a venture capital firm that supports founders with a long-term view who challenge the status quo, partnering with them from seed to growth stage and beyond to build companies that withstand the test of time.
With offices in San Francisco, Palo Alto, New York City, London, and Boston, the firm has helped support the growth of businesses such as Airbnb, Deliveroo, Guild, Gusto, Hubspot, Illumio, Lemonade, Livongo, Oscar, Samsara, Snap, Stripe, and Warby Parker.
“Having known the Factorial team for years and seen their growth trajectory and the performance of its customer cohorts, General Catalyst strategically chose to invest and turbocharge the company’s go-to-market strategy. This decision aligns with our objective to identify and support innovative ventures with substantial market impact,” adds Pranav Singhvi, Managing Director at General Catalyst.
Read the orginal article: https://siliconcanals.com/news/startups/spanish-factorial-secures-e75m/
