General Catalyst leads $150M equity investment, its first equity stake in Factorial as part of Series D round that values the company at over $2.5 billion, becoming one of the most valuable AI scale-ups in Europe
General Catalyst simultaneously commits an additional $540M through its Customer Value Fund, funding Factorial's sales and marketing investment with no additional dilution enabling sustainable growth without cash burn, as the company has been doing for the past years
Funding accelerates Factorial's reset from a SaaS company to an AI Workforce Operations Platform positioned to become the single agentic infrastructure for European companies, and deepens penetration in European markets, with a special focus on Germany

BARCELONA, Spain, June 3, 2026 /PRNewswire/ -- Factorial, Europe's leading AI Workforce Operations Platform, today announced the closing of a $150 million Series D funding round at a valuation of $2.5 billion, making it one of the most valuable Spanish and European scale-ups. The round is led by General Catalyst, which is making its first equity investment in Factorial, joined by other investors including Atomico and Four Rivers. Alongside the equity round, General Catalyst is doubling down on its prior investment, committing up to an additional $540 million through its Customer Value Fund, bringing total capital committed to over $700 million, securing Factorial's growth during the following years.

One of Europe's Most Valuable Scale-Ups

With this round, Factorial crosses the $2.5 billion valuation mark, surpassing many Spanish scale-ups and entering the top 20 within the European Union. The milestone reflects ten years of accelerated growth, a loyal and expanding customer base of over 16,000 businesses across 90+ countries, and a product strategy that continues to win in competitive European markets being the only company in the sector that has successfully internationalized across these markets.

Jordi Romero, CEO and co-founder of Factorial commented; "Ten years ago we built Factorial as a SaaS company. Today we are an AI-first company, building agents for our customers, and we are doing it for over 16,000 businesses, from Europe, with the discipline that has defined our first decade. We have reset the product, the architecture, and the way our customers run their work around AI agents. General Catalyst's partnership gives us the conviction and the capital to turn that reset into a category-defining business. This round does not close a chapter. It opens the one that matters."

General Catalyst's First Equity Stake in Factorial

General Catalyst's equity investment marks its first direct ownership stake in Factorial, following the firm's earlier engagement through its Customer Value Fund. The company's strong performance on its unit economics as demonstrated by the CVF investment allows General Catalyst to build the conviction in Factorial's long-term trajectory from its product innovation to its financial discipline and European market leadership. This equity investment comes at the same time that Factorial has transformed its business model from a SaaS company to a human-first AI Workforce Operations Platform.

Pranav Singhvi, Partner at General Catalyst commented; "The next decade of enterprise software will belong to the companies that rebuild themselves around AI, not the ones that bolt it on. Factorial is doing exactly that, and doing it with a level of product horizontality and an ambitious growth at scale that is rare anywhere in the world. That combination is why we are deepening our partnership across both equity and our Customer Value Fund."

"At General Catalyst, our goal is to be the first and last source of capital for the world's most ambitious companies. Factorial is the perfect example." Hemant Taneja, CEO of General Catalyst added.

A New Model for Growth: $700M Through General Catalyst's Customer Value Fund

In addition to the equity round, General Catalyst is committing up to an additional $540 million through its Customer Value Fund, bringing total capital committed to over $700 million, securing Factorial's growth during the following years. Under this structure, General Catalyst's returns are tied exclusively to the customer value created by that spend and capped at a fixed amount. This approach gives Factorial the financial firepower to expand aggressively across Europe while preserving its equity.

From SaaS Company to AI Workforce Operations Platform
The investment comes at a pivotal moment in Factorial's product evolution. After ten years building one of Europe's largest systems of record for HR, Finance and IT, the company has reset its product around AI, moving from a fixed set of screens and workflows to an agent-driven platform that learns each customer's policies, executes against them, and adapts as the business changes.

At the center of that architecture is Factorial One, the platform's unified workspace, built around a deliberately simple two-agent model. One agent represents the organisation, holding and applying the policies a company defines across HR, finance and IT. The other represents the individual employee, multiplying what each person can do within those policies, drafting work, surfacing what they need, and executing tasks on their behalf with full accountability to the person it serves.

Where much of the market is racing to deploy hundreds or thousands of specialized agents, Factorial's bet is that companies want fewer agents, clearer accountability, and a single source of truth for how their business runs. That shift positions Factorial to capture a significantly larger share of the business operations software market, well beyond HR.

Doubling Down on Germany - New Munich Office and Aggressive Market Push
A significant share of the new capital will be deployed in Germany, which Factorial is naming as its number one international growth market. The company is opening a new office in Munich to anchor its presence in Germany, complementing its existing operations and bringing Factorial closer to the mid-market customers, partners, and talent that are driving the company's strongest growth outside Spain.

Hiring will scale aggressively across Germany over the next 12 months, including sales, customer success, product, marketing, and engineering roles based in Munich and across the country, as Factorial moves to take market share in a region that has historically been served by a small number of incumbent providers. Germany already represents one of Factorial's fastest-growing customer bases, and the new capital is designed to compound that momentum: more local product capability, more local language and compliance depth, and a German team large enough to win against any competitor in the market.

"Germany is our most important market in Europe, and it has been underserved for too long. We are putting our team, our capital, and our product roadmap behind it. Munich is just the start." said Jordi Romero, CEO and co-founder of Factorial.

Beyond Germany, Factorial will continue to accelerate across France, Italy and Portugal, which are already among the company's fastest-growing markets, while expanding its team globally at up to 50 new hires per week.

For more information visit - factorialhr.co
For contact - factorialspain@teamlewis.com

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