Factorial Raises $150M Series D at $2.5B Valuation

Factorial, a Barcelona-based all-in-one HR software provider, announced a $150 million Series D funding round on June 3. The round brings the company's valuation to $2.5 billion. General Catalyst led the round, joined by Atomico and Four Rivers. General Catalyst also committed up to $540 million through its Customer Value Fund, bringing total capital committed to over $700 million.

The company plans to use the funding to support expansion across Europe, with Germany as its top international growth market. Plans are already in the works to open a Munich office and scale hiring across the country over the next 12 months.

The round marks General Catalyst's first direct equity stake in Factorial, following earlier engagement through its Customer Value Fund, which ties returns to customer value created and capped at a fixed amount.

Founded in 2016 by Jordi Romero, Bernat Farrero and Pau Ramon Revilla, Factorial sells HR, payroll and time-tracking software to small and mid-sized businesses. It now has roughly 1,500 employees and 16,000 customers across 90 countries.

The company moved to become an "AI-first" company in 2025, a pivot that began with the launch of Factorial One in November. Factorial One runs on two AI agents: one represents the company and enforces its HR, finance and IT policies. The other works for the individual employee, drafting documents, surfacing information and completing tasks on their behalf within those policy limits. The company acquired developer platform YepCode in May 2026 to build integration infrastructure for agents across third-party systems. 

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