Factorial, the start-up developing an AI-powered platform for workforce and business process management, has announced that it has closed a $150 million Series D funding round, reaching a total valuation of $2.5 billion.
The funding round, led by General Catalyst with participation from Atomico and Four Rivers, places Factorial among Europe’s highest-valued scale-ups and strengthens the company’s position in the growing market for AI platforms in the workplace.
For the first time, General Catalyst is taking a direct stake in the company. At the same time, the fund has announced a further commitment of up to $540 million through its Customer Value Fund, bringing the total resources made available to Factorial to over $700 million. With over 16,000 customers in more than 90 countries, the company now aims to accelerate growth in key European markets and expand its reach beyond traditional HR software.
“Ten years ago, we built Factorial as a SaaS company. Today, we are an AI-first company that develops agents for our clients, and we are doing so for over 16,000 businesses worldwide with the same discipline that characterised our first decade of operation,” says Jordi Romero, the company’s CEO and co-founder (pictured on the right alongside Bernat Farrero, another co-founder), in a statement – “We have reimagined the product, the architecture and the way our clients organise their work around AI agents. The partnership with General Catalyst gives us the conviction and the capital to transform this change into a company destined to define a new market category. This round does not close a chapter, but opens an even more important one.”
The deal represents one of the largest recent investments in the European B2B software sector. The new funds will be used primarily to support commercial expansion and marketing, enabling Factorial to accelerate its growth without resorting to further capital raises and without diluting the stakes of existing shareholders.
For General Catalyst, this marks its first direct equity investment in Factorial following a partnership established through the Customer Value Fund. The decision reflects the investor’s confidence in the company’s ability to transform itself from a business management software provider into an AI platform for workforce and business process management.
“The next decade of enterprise software will belong to companies that rebuild themselves around artificial intelligence, not those that simply add it to their products,” says Pranav Singhvi, a partner at General Catalyst. “Factorial is doing exactly that, and is doing so with a level of product completeness and ambition for large-scale growth that is rare to find anywhere in the world. It is this combination that has led us to strengthen our partnership through both equity investment and our Customer Value Fund.”
“Our goal at General Catalyst is to be the first and last source of capital for the world’s most ambitious companies. Factorial is the perfect example of this,” adds Hemant Taneja, CEO of General Catalyst.
The funding comes at a crucial stage in the product’s development. Having built one of Europe’s leading platforms for managing human resources, corporate expenditure and IT, Factorial is now repositioning its offering around artificial intelligence. At the heart of the new strategy is Factorial One, an AI agent capable of enforcing company policies, automating operational tasks and supporting employees in their day-to-day work. The stated aim is to become a single infrastructure for managing business processes, overcoming the fragmentation of traditional software and expanding the target market well beyond the HR sector.
A significant portion of the new funding will be allocated to Germany, which has been identified as the main international growth market. Factorial will open a new office in Munich and launch a recruitment drive covering sales, customer success, marketing, product and software development roles.
Alongside Germany, Factorial will continue to invest in France, Italy and Portugal, markets that have seen strong growth in demand in recent years. The company also plans to significantly expand its global workforce, with recruitment set to reach up to 50 new hires per week.
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