Barcelona-based HR management platform Factorial has garnered $120 million in a Series C round that saw the company obtain the coveted unicorn crown. Factorial primarily serves SMBs by automating and centralising a number of HR processes including recruitment and selection, onboarding, paid time off, and time tracking.
The new capital will be used to help the company expand its product depth and feature range, as well as further scale operations in existing markets across the UK, Spain, the US, Germany, Italy, Portugal, France, Mexico, and Brazil, including opening a dedicated office in Miami and expanding into new markets globally.
The round was led by Atomico, with GIC and all previous investors including Tiger Global, CRV, K-Fund, and Creandum, all participating.
“HR has gone through a seismic shift across every industry - from a focus on workforce control to the primary function of empowering and challenging your employees. Getting this right results in a key SMB strength: a close-knit, people-centric culture that many workers seek.” - Factorial CEO Jordi Romero.
With market conditions being, shall we say, slightly less than ideal, Factorial’s $1 billion valuation and sizable Series C round raise is a testament to what co-founders Jordi Romero (CEO), Bernat Farrero (CRO) and Pau Ramon (CTO) have built.
Now counting some 7,000+ customers including Freshly Cosmetics, Vicio, Booking.com, and Whisbi from across 9 countries, Factorial has seen over 200% annual growth in revenue every year since 2019, accelerating to 3.7x growth since the company’s Series B round one year ago and expanded to a team of 800.
Through the rise of hybrid and remote work, worker shortages, and high competition for talent, SMBs are struggling to remain competitive while efficiently managing workforce complexity. Add to this conundrum the fact that most small to medium-sized businesses tend to hold off on fleshing out a dedicated HR staff until later in their growth cycle, and the need for a solution such as Factorial has on offer becomes all the more apparent.
“SMBs are vastly underserved in the current HR software market, which is focussed on attracting large enterprises and these products are often too complex and costly for small businesses,” said Atomico partner Luca Eisenstecken. “Factorial is radically different in that it is a horizontal product designed with SMBs in mind. Factorial’s all-in-one software replaces time-intensive manual work and offers insights and metrics to provide essential support and allow smaller companies to foster a people-first approach whilst scaling the business.”
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