2024-04-11 00:54:12
By Philippe Guerrier | Thursday April 11, 2024 | Core HR
The HRIS platform for SMEs, of Spanish origin, benefits from new financial support from the General Catalyst fund. Jordi Romero, CEO of Factorial, provides details on the new business impulse which also concerns France.
HRIS for SMEs: interview with Jordi Romero, CEO and co-founder of Factorial – © DR
After a lackluster first quarter in terms of financing in the HR Tech segment, Factorial has just given a rather encouraging signal.
The HRIS platform for SMEs, of Spanish origin, has found an alternative solution to traditional fundraising. It has just completed a new round of financing of $80 million from the American venture capital company General Catalyst.
This time, it is a financial contribution granted to Factorial to preserve the company’s cash flow. A way to circumvent a new capital dilution suffered by its shareholders through a new round of funding and to maintain unicorn status (valuation of a start-up exceeding one billion dollars).
Factorial assures that it still has a reserve of 100 million dollars from its last fundraising of 120 million dollars in October 2022 with the European fund Atomico as lead manager.
Asked by RH Matin, Jordi Romero, CEO and co-founder of Factorialprovides details on the implications of this new funding, developments in France and AI.
Funding
- “Taking into account our financing history since the creation of the company in 2016, Factorial has benefited from a total financing of $220 million.
- We raised $120 million ahead of our financial deal with General Catalyst.
- Then, once we closed the deal with General Catalyst, we got another $80 million. These funds will be used to fuel our growth and expansion plan.
- Our main shareholders remain Atomico, Tiger Global, CRV, K-Fund, Creandum, and Point Nine,” says Jordi Romero.
The business challenges to be met
- “Thanks to this financial contribution of $80 million from General Catalyst, we will be able to intensify our sales and marketing efforts, with a reinforced focus on Europe. This investment will help us strengthen our presence in key regions and refine our go-to-market strategy for our platform.
- In Europe, several countries are considered strategic for our development:
- Spain,
- France,
- Italy,
- Germany,
- Portugal.
- At the same time, our existing cash flow of $100 million and the revenue streams generated by our business will be used to develop our products and carry out our strategic maneuvers.
- This balanced approach is essential to becoming the ‘all-in-one’ HR services platform for SMEs, compatible with their diverse needs. We have a potential base of 10 million SME customers between Europe and the American continent. Factorial intends to consolidate its presence in key markets in Europe, while extending our influence globally,” says Jordi Romero.
As it currently stands, Factorial has 500,000 users of its platform worldwide and a database of 10,000 client companies in more than 65 countries, including France.
Its total workforce is 900 employees worldwide. Its head office is located in Barcelona (Spain) and it has branches in Sao Paulo (Brazil) and Miami (United States).
Dedicated resources for the French market
- “Currently, we have a team of around a hundred people focused on growth and expansion in the French market. This is a significant effort which underlines our commitment to addressing French companies and consolidating our presence in this area;
- The French market is incredibly important for Factorial. The potential is enormous with a pool of 4.2 million SMEs, which represents the largest proportion of businesses if we look at the configuration of the country’s business market,” says Jordi Romero.
Factorial draws attention to GTA which is “of crucial importance” on the French market, while opening up to other horizons to meet the specific needs of customers in France, such as the management of dematerialized expense reports and payroll management.
Here are the main HR service functionalities for SMEs that Factorial highlighted in an HR Morning webinar organized in June 2023.
Factorial: the main functionalities of the HRIS platform for SMEs – © DR
Factorial presents customer references in France such as Emova Group (florist franchise with the Monceau Fleurs brand) and Univet (network of veterinary clinics).
The technology publisher works in France with technology partners like Silae and Microsoft. The HR services platform is compatible with the SAP Business One and Microsoft Business Central suites (2 ERPs for SMEs).
The impact of AI
- “The implementation of AI technologies, particularly generative AI, is a real game-changer in our business. It’s like having a trusted co-pilot in an airplane cockpit who helps navigate our internal processes and product development; –
- We don’t just rely on AI alone. We believe in retaining that human touch. Certainly, AI really helps to automate manual tasks without real added value, but we want to keep the controls,” says Jordi Romero.
Key concepts and definitions: #HRIS or Human Resources Information System
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