Barcelona-based HR tech unicorn Factorial has raised $120 million in non-dilutive funding from General Catalyst to accelerate its sales and marketing growth.
The capital comes from GC’s Customer Value Fund, a financing model that supports high-growth SaaS companies without requiring equity dilution.
Fueling Growth in the HR Software Market
Factorial provides an all-in-one HR platform for small and medium-sized businesses (SMBs), offering:
- Payroll and benefits management
- Employee performance tracking
- Time tracking and compliance tools
CEO Jordi Romero highlighted Factorial’s rapid expansion:
“We’ve grown sixfold in the past year, with over 13,000 paying customers. This funding will help us scale even further.”
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How the Customer Value Fund Works
Unlike traditional venture capital, GC’s Customer Value Fund is a non-dilutive loan, repaid through the gross profit generated by the new customers it helps acquire. This financing model is increasingly used by late-stage startups that have strong revenue predictability.
- Factorial has now secured $200M through GC’s fund, including an $80M tranche in 2024.
- The company last raised $120M in equity funding in 2022 at a $1B valuation, which remains untouched.
- A secondary funding round may follow to provide liquidity to early investors and employees.
Competing in a Crowded HR Tech Space
Factorial’s funding comes as rival HR startups Rippling and Deel face legal battles over alleged corporate espionage. To avoid distractions, Factorial is conducting internal audits to ensure compliance with ethical sales practices.
With $120M in fresh funding, the firm aims to expand globally, strengthen its HR automation capabilities, and establish itself as a leading player in SMB-focused HR solutions.
