Factorial, an HR software company, recently announced that it raised $120M from new and existing investors, which doubled its valuation to $1B. This round of funding will be used to build enterprise-quality HR solutions for small and medium-sized businesses.
The company was founded in 2019 to help SMBs by making managing their HR processes easier and more affordable. This latest news signals a major milestone for the company and its growth.
Overview of Factorial
Factorial is a technology company that provides HR software and services to businesses worldwide. Founded in 2015, Factorial has quickly become one of the world’s fastest-growing businesses, with more than 5 million users in over 130 countries. With recent investments of $120M, Factorial has been valued at $1B, making it one of only a handful of business software companies to achieve unicorn status.
Factorial offers an all-in-one platform that allows businesses to manage all aspects of their workforce on a single platform. This includes employer branding, recruiting and onboarding processes, performance management, compliance tracking, benefits administration and payroll management (including taxes for each country where the business operates). Additionally, Factorial provides employees with an intuitive mobile app to view their information (including pay slips), track leaves requests and even request time off from anywhere worldwide.
Factorial also makes integration with other applications easy thanks to its open API model which enables companies to extend their existing data structures across multiple applications. Furthermore, Factorial has leveraged machine learning capabilities to enable businesses to make data-driven decisions about their talent needs. From predicting retention rates to assessing employee development opportunities or understanding career mobility trends – Factorial provides insights that help companies drive positive change within their organisations.
Summary of the $120M funding round
Factorial, a workplace management software provider, recently announced a major funding round of $120 million. Silicon Valley’s next44 led the deal, with participation from existing investors 8VC, QED and Iron Pillar. This investment values the startup at an impressive $1 billion, doubling its previous valuation.
This latest series D round of funding brings the total capital raised by Factorial to $184 million since it was founded in 2015. This outside investment will support the company’s continued growth and innovations across its employee solutions platform. CEO Alexey Rubezhanskiy commented on the milestone saying: “As part of this [investment], we plan to double down on our mission to provide best-in-class HR automation solutions for businesses around the world.”
The funds will also go towards expanding operations in Europe and other global markets, improving existing HR automation solutions & introducing more user-centric products. With this new influx of capital, Factorial is well positioned to reach its goal of becoming the leading player in employee management resources and software tools.
Factorial adds $120M and doubles valuation to $1B to build enterprise-quality HR for SMBs
Factorial, the payroll and HR system for SMBs, announced a $120M investment round that doubles the company’s valuation to $1B. This follows a $20M Series A raised in 2018, bringing the total raised to over $150M.
Led by existing investor Founders Fund, the round also included new investors such as Tiger Global Management, Base10 Partners, and The Chernin Group, to name a few. This comes at an opportune time where the current global pandemic has increased the need for enterprise-quality HR solutions.
Let’s take a closer look at the details of the funding round.
Investors Involved
Factorial, a leading Human Resources (HR) software solutions provider, recently raised $120 million in funding led by SoftBank Investment Advisers LLC and Tiger Global. This brought the company’s total valuation to $1 billion, doubling its previous valuation of $500 million when it raised over $30 million in Series C almost a year ago in October 2020.
Other investors participating in the round included Sequoia, e.ventures and Point Nine Capital, and new investors ENERN Investments and Pacific Horizon Ventures. The round was also supported by various angels like Spencer Rascoff (former CEO at Zillow), Thuan Pham (Chief Technology Officer at Uber) and Qinrui Tang (Partner-in-charge at Tencent Investment).
This successful funding attests to Factorial’s accomplishments as a leading global HR software provider since its founding in 2017. Thousands of companies worldwide use its comprehensive HR solution to streamline their human resources processes such as employee onboarding, time and attendance management, payroll processing and compliance with labour regulations.
Amount Raised
In the latest funding round, Factorial has raised $120M in capital from a group of investors. This capital sum increases the company’s valuation to $1B, double its original valuation.
The investment was led by two existing backers, Tiger Global Management and Steadview Capital. As part of the funding round, new investors such as Dawn Capital, Lakestar, Felix Capital, Balderton Capital and General Catalyst joined.
These funds will further accelerate the development of its products and services related to Human Resource Management (HRM). This includes expanding software capabilities for onboarding processes and payroll for faster operation for mid-sized companies.
Factorial plans to use these funds to double down on product development efforts and continue expanding into more markets beyond its current presence in Spain & Portugal. The goal is to develop a comprehensive HR experience around employee engagement while improving operational effectiveness.
Valuation
Valuation is the estimated worth of a company. It is calculated by analysing the business’s overall performance and future potential, including growth projections. Companies in the most early stage of development often have limited financial data and lower valuations. However, once a company begins producing revenue, its profitability directly impacts its valuation.
Factorial recently raised $120M in funding, doubling their valuation to $1B. This indicates that their investors have strong confidence in their potential for growth and success. The additional funding seeks to make way for further expansion, product development, marketing initiatives, customer acquisition and more—all greatly contributing to Factorial’s value as a company.
Additionally, achieving unicorn status may afford opportunities for more strategic partnerships with larger organisations or buyouts from them. Finally, by Factorial’s announcement of their current round of funding; it provides further evidence as to why this achievement may be a remarkable feat for startups worldwide aspiring for similar success stories over time.
Impact of the Funding Round
The recent $120M funding round for Factorial has pushed their valuation to a billion dollars, doubling their previous valuation. This funding round is a huge win for both Factorial and its investors and sets a benchmark for future rounds.
This funding will help Factorial build an enterprise-quality HR platform specifically tailored to the needs of small- and medium-sized businesses. But, first, let’s look deeper into the impact of this funding round.
How the Funds Will Be Used
The additional capital will enable the Factorial team to accelerate its growth in three core areas: investing in product development, expanding international operations, and positioning for acquisitions.
Product Development: Factorial plans to invest heavily in developing cutting-edge products that pioneer the intersection of data science and machine learning. The company aims to remain at the forefront of technology by leveraging artificial intelligence and predictive analytics to develop products that drive enterprise value. Additionally, it is exploring various opportunities, such as remote work automation platforms.
International Expansion: Among its other goals, Factorial seeks to expand operations into Asia Pacific markets, where they have identified potential markets with high growth potential. The company has identified key talent pools with the necessary expertise in software engineering and machine learning to achieve these goals. The funds allocated will allow Factorial to build international teams rapidly to reach a broader global presence more quickly.
Acquisition Strategy: As it looks further into the future, Factorial intends to leverage its strong innovation capabilities and access to capital resources through these funds to pursue strategic acquisitions that fit into their larger vision and build scale quickly. With a focus on building platform companies grounded by values of simplicity, transparency and accountability, this latest round of funding will allow them to continue pursuing this objective with greater speed than before. Beyond that strategic goal, EyeQue is committed to managing resources prudently and efficiently while maintaining strong ROI metrics by delivering highly profitable solutions for clients to enhance business productivity for all customers.
Benefits for SMB Market
Funding rounds such as Factorial’s $120M injection can unlock a range of accessible benefits for the SMB market, many of which are difficult to achieve without sufficient capital. For example, resources and operations can open up with improved access to talent and new services at competitive rates as the company expands.
Small-to-medium businesses often benefit from a funding round as more capital means there’s greater security in terms of liquidity and financial risk management. This stability enables companies to focus more on rapid expansion with an increased investment in innovation and technology for optimising efficiency. In addition, when the company returns higher dividends and gains positive traction, this often increases confidence amongst investors who may look more favourably upon investments.
At an industry level, companies such as Factorial are becoming increasingly important players within the SMB market, offering services at competitive rates and providing high levels of security that may not be available elsewhere – particularly when negotiating digital agreements through long-term partnerships or contracts. Through a commitment to such projects, resources and personnel can be restructured towards focused growth strategies that consider a longer-term outlook for holistic progress across the industry in business operations, technology adoption or data management practices.
Future Plans
With the addition of their $120M investment, Factorial plans to make the most of their newfound capital. These funds will allow them to build enterprise-quality HR for SMBs and double their valuation to $1B. In addition, they plan to use this money to continue creating products that help simplify and streamline HR processes.
What are their plans for the future? Let’s take a look.
Expansion Plans
Factorial, a software platform for HR, has just announced a $120 million Series C that puts the company’s valuation at $1 billion. This development will provide the company with additional capital to accelerate its global growth, fund strategic acquisitions and partnerships, and drive product premier innovations.
The capital raised will allow Factorial to expand into new regions across the globe and increase its market presence in current markets. It also provides an opportunity to continue investing in its technology and unique approach to HR management. As such, it intends to rapidly grow its portfolio of products with innovative new features for payroll, time off, recruiting and development initiatives. The fresh influx of funds is also a catalyst to speed up international expansion plans into Europe and Latin America.
In addition, Factorial intends to strengthen its partnerships, pursuing strategic opportunities with leading enterprises all while exploring potential acquisitions of companies whose products can represent different corners of the HR market – such as HR analytics or employee engagement solutions – to boost the reach of the product offering. Moreover, through this funding it aims to double down on customer-focused innovations such as Artificial Intelligence (AI) based solutions more comprehensively interfacing relevant players in workforce administration.
Product Development
Factorial plans to use the $120M raised in the latest round of funding to expand their product development. The company plans to double its valuation from a current mark of $500M up to $1B.
To achieve its ambitious growth targets, Factorial will focus on strengthening their existing products and creating innovative new offerings. Their primary effort right now is centred around developing an engaging employee experience focusing on areas such as; automation, improved user-interface designs, enhanced communication tools and analytics.
Another key part of Factorial’s product expansion plan is pursuing adjacent markets and customer segments. The company has plans to launch new products and services that appeal specifically to SMB employers, hourly workers and other niche customer groups.
Finally, Factorial will look into further expanding its international presence. Given their proven track record in some of the world’s leading markets like France, Spain and Canada combined with attractive market opportunities in Asia Pacific, South America & Africa – there are big plans for expansion into new regions over the next few quarters.
By investing heavily into product development initiatives outlined above, Facts shows confidence that it will grow its business significantly moving forward — thereby greatly increasing value for customers — employees — & investors alike!
tags = Factorial, $120M, enterprise-quality HR, SMB, factorial hr tiger global 530mlundentechcrunch, HR technology, unicorn, Tiger Global
