Factorial, the leading Next-gen European business management software, today announced a significant expansion of its investment agreement with General Catalyst. The additional $120 million increases General Catalyst’s total investment in Factorial from $80 million to $200 million, reinforcing its confidence in Factorial’s trajectory and unlocking new opportunities for accelerated growth. The funding will fuel Factorial’s geographic expansion, particularly in Germany, France, and Italy, and further solidify its leadership in the business management software market.
Jordi Romero and Bernat Farrero, Factorial’s co-founders
The company, with its ambition to become the most horizontal and easy-to-use platform for businesses of all sizes, has recently experienced major growth from its newest products in Project Management, Training, and Expense Management, transitioning from its roots as an HR software provider to a comprehensive business management solution.
From HR to a Complete Business Management Platform
Originally founded as an HR software company, Factorial has evolved into a full-suite business management platform. Recent success has been driven by the company’s expansion into Project Management, Trainings, and Expense Management, aligning with its vision to create the most user-friendly, horizontal platform for all businesses.
The decision by General Catalyst to increase its investment in Factorial highlights the excitement with the company’s results in 2024, particularly in terms of its business model and efficient growth strategy for the coming years. Pranav Singhvi, General Catalyst’s Managing Director, commented: “From our perspective, it’s rare to see a company grow as fast and efficiently as Factorial did in 2024. Their ability to scale sustainably while staying at the forefront of innovation made this an easy decision for us. We’re doubling down on our investment and are excited to fuel Factorial’s next phase of growth.”
Sustainable growth and strategic expansion
Factorial has achieved remarkable growth in 2024, expanding its client base to over 13,000 businesses. With this additional funding, Factorial is well-positioned to continue its growth without compromising its balance sheet or diluting shareholder equity. “Factorial’s efficient and predictable growth enables us to pursue ambitious expansion without diluting our shareholders – making us a rare company that is both hyper-growth and financially sustainable.” says Jordi Romero, CEO and co-founder of Factorial.
Factorial is experiencing rapid adoption across Europe, with particularly strong momentum in Germany, its fastest-growing market. Customers appreciate the simplicity and flexibility of Factorial’s all-in-one platform, which seamlessly integrates multiple business functions. To support its accelerated expansion, Factorial is scaling its team aggressively, hiring up to 50 employees per week to grow from 900 to 1,300 team members.
