Factorial raises $150M Series D at $2.5B valuation to expand across Europe

Factorial, a Barcelona-based workforce management software company, has raised $150 million in Series D funding at a $2.5 billion valuation. The round was led by General Catalyst, with participation from existing investors including Atomico and Four Rivers.

Alongside the equity investment, General Catalyst has committed up to an additional $540 million through its Customer Value Fund, bringing the total capital committed to more than $700 million. The funding is intended to support Factorial’s continued expansion and product development across Europe.

Founded in 2016, Factorial provides software for workforce operations, covering functions across HR, finance and IT. The company serves more than 16,000 businesses in over 90 countries and has spent the past decade building a platform designed to centralise business operations for small and medium-sized enterprises.

The latest investment comes as Factorial expands its focus on artificial intelligence. The company has transitioned from a traditional software-as-a-service model toward what it describes as an AI-first workforce operations platform, integrating AI agents into business workflows and processes.

Commenting on the funding, Jordi Romero, CEO and co-founder of Factorial, said:

Ten years ago, we built Factorial as a SaaS company. Today we are an AI-first company, building agents for our customers, and we are doing it for over 16,000 businesses, from Europe, with the discipline that has defined our first decade.
We have reset the product, the architecture, and the way our customers run their work around AI agents. General Catalyst's partnership gives us the conviction and the capital to turn that reset into a category-defining business. This round does not close a chapter. It opens the one that matters.

At the centre of the company’s AI strategy is Factorial One, a unified workspace that combines organisational and employee-facing AI agents. According to the company, the platform is designed to help businesses manage policies, workflows and operational tasks across HR, finance, and IT functions through a single system.

General Catalyst’s investment follows its previous engagement with Factorial through the Customer Value Fund. They said the company’s operational performance, product development and growth trajectory contributed to its decision to make its first direct equity investment in the business.

A significant portion of the new capital will be invested in Germany, which Factorial has identified as a key growth market. The company plans to open a new office in Munich and expand hiring across sales, customer success, product, marketing and engineering roles.

Beyond Germany, Factorial plans to continue expanding across France, Italy and Portugal while growing its international team and investing further in its AI-powered workforce operations platform.