Last year we told you about a Spanish SaaS company called Factorial that had global ambitions to own the HR for SMBs space around the world. And today the company has more ammo for that battle with a new Series B round.
Factorial differs from many of its HR SaaS rivals in its specific focus on HR management vs payroll processing, which is the bread and butter of many of its competitors. Factorial built its software for non-HR professionals at smaller companies to handle sophisticated HR functions.
The Barcelona-based company was founded in 2016. It began in Spain, followed by France. And now the company operates in 65 countries. The company currently has offices in Barcelona and Mexico City.
Now, Factorial’s fresh $80 million Series B came at a $530 million valuation. Tiger Global Management led the round. Also joining were previous investors CRV, Creandum, Point Nine Capital, and K Fund.
Factorial’s product automates every step of the HR process, collecting data along the way. The company feeds this data back to customers in the form of insights that companies can use to make better people-related decisions. The company’s stated ambition is to become “the global leader of SME HR technology.” The company targets companies as small as 10 employees, all the way up to 1,000.
The company charges a fee per employee. Rates go up based on features and customization.
Big Ambitions for Small Business
So Factorial’s raise is definitely impressive. But let’s put it in perspective. Gusto is one of Factorial’s chief rivals on the world stage. And Gusto, which was founded in 2011, recently raised $175 million at a reported nearly $10 billion valuation as it sets its sights on an IPO. So Factorial remains a relatively small player in the HR SaaS scheme of things. The question is, for how long?
All signs seem to point to Factorial’s continued growth. The company says it has been tripling its revenue every year.
Factorial CEO Jordi Romero said the company wasn’t looking for money when Tiger Global approached them about leading a new funding round.
“But we decided to accept the money,” Romero said. “Because this will allow us to build more products, reach more customers, and achieve our dream of becoming the global leader in SME HR technology.”
To that end, Factorial plans to expand into new markets. And of course, that will likely include North America. Factorial’s Mexico City office is a hub for its Latin American operations. Factorial also plans to double its team from 250 currently over the next few months. According to The Rio Times, Factorial also plans to open an office in Brazil.