Barcelona-based Factorial reaches a €2.15 billion valuation after raising €129 million

Barcelona-based HR tech unicorn Factorial has announced the closing of a €129 million Series D funding round led by General Catalyst, boosting the company’s valuation to approximately €2.15 billion and positioning it among the 20 most valuable scale-ups in the European Union.

The investment marks General Catalyst’s first equity stake in Factorial, joining existing investors including Atomico and Four Rivers. Alongside the capital round, General Catalyst has committed up to an additional €464 million through its Customer Value Fund, bringing Factorial’s total non-dilutive growth capital commitments to more than €601 million.

Founded in Barcelona, Factorial has grown into one of Europe’s leading business management software providers, serving more than 16,000 companies across over 90 countries. The company offers solutions spanning human resources, finance, and IT management, and is now accelerating its transition from a traditional software-as-a-service (SaaS) company to an AI-first platform.
 

“The next decade of enterprise software will be led by companies that rebuild themselves around AI, not those that simply add it as a feature”

Pranav Singhvi, Partner at General Catalyst

Share quote:

• X
• LinkedIn
• Facebook
• Whatsapp

"Ten years ago, we built Factorial as a SaaS company. Today, we are an AI-first company, building agents for our customers, and doing so with the discipline that defined our first decade," said Jordi Romero, CEO and co-founder of Factorial. "We have reinvented our product, architecture, and the way our more than 16,000 customers manage work around AI agents. Our partnership with General Catalyst gives us the conviction and capital to transform ourselves into a category-defining business. This round does not close a chapter. It opens the one that truly matters."

A new growth model focused on capital efficiency

General Catalyst’s decision to become a shareholder represents a significant endorsement of Factorial’s long-term operational discipline and scalability.
"At General Catalyst, our goal is to be the first and last source of capital for the world’s most ambitious companies. Factorial is a perfect example of that," said Hemant Taneja, CEO of General Catalyst.

The additional €464 million commitment through the Customer Value Fund introduces an alternative financing structure designed to support growth while preserving shareholder value. The capital will be used to pre-finance investments in sales and marketing, with returns linked exclusively to customer value generated through those investments and capped at a fixed amount.

According to Factorial, this approach provides a strong financial foundation to expand market share across Europe while maintaining strict financial discipline and limiting shareholder dilution.

"The next decade of enterprise software will be led by companies that rebuild themselves around AI, not those that simply add it as a feature," said Pranav Singhvi, Partner at General Catalyst. "That is exactly what Factorial is doing, combining product breadth with large-scale growth in a way that is rare anywhere in the world."

Germany becomes a strategic growth priority

A significant portion of the newly secured capital will support Factorial’s expansion in Germany, currently its fastest-growing international market.
To strengthen its presence in the country, the company will open a new corporate office in Munich and significantly increase hiring across sales, customer success, product, marketing, and engineering roles over the next 12 months.

Germany represents one of Factorial’s fastest-growing customer bases, and the new investment will support additional local product capabilities and compliance infrastructure. "Germany is our most important market in Europe and has been underserved for too long. We are investing our team, capital, and product roadmap behind it. Munich is only the beginning," said Romero.

Beyond Germany, Factorial plans to continue accelerating growth in France, Italy, and Portugal while maintaining a global hiring pace of up to 50 new employees per week.

Reinforcing Barcelona-Catalonia’s scale-up ecosystem

Barcelona has been recognized as one of Europe’s leading startup ecosystems. According to the 2026 Global Startup Ecosystem Index published by StartupBlink, Barcelona ranks as the fifth-best startup hub in the European Union for the third consecutive year, behind only Paris, Berlin, Stockholm, and Amsterdam.

The city is home to a growing number of internationally recognized scale-ups, reinforcing its position as a leading innovation hub in Southern Europe.

Factorial’s latest funding milestone further strengthens Barcelona-Catalonia’s position as one of Europe’s leading hubs for startups and scale-ups.
The company joins a growing group of high-growth technology firms founded in Catalonia that have successfully expanded into international markets and attracted major global investors. Supported by a highly skilled talent pool, world-class research infrastructure, and a thriving innovation ecosystem, Barcelona continues to foster the development of globally competitive companies across sectors such as digital technologies, health, mobility, and advanced industries.

As one of Catalonia’s most successful technology companies, Factorial’s growth highlights the region’s ability to create and scale innovative businesses capable of competing on a global stage.
 

Source: Factorial