Factorial is one of the promising start-ups in the Barcelona digital ecosystem. Founded in 2016 with the purpose of digitizing the human resources sector, it is in a moment of full expansion after changing the business model three years ago.
“The change in strategy has been key: we started offering the software for free and charging commissions in some services, but the model failed because it needed to attract too large a volume of clients. So we decided to change and demand a fee on a regular basis”, comment Pau Ramon and Jordi Romero, founders of the company together with Bernat Farrero, who initially promoted Factorial through Itnig, a start-up accelerator where he is the maximum responsible.
The new model, they indicate, has led the company to triple sales year after year. “In 2020 we invoiced 3 million, in 2021, we entered 10 and this year, we expect to reach 30 million. We are focused on growth and we expect to enter profits in 2024”, they assure.
Since its birth, Factorial has sold its technology to small and medium-sized companies, from 10 to 500 employees. “There are already many solutions for large companies on the market, so we decided to explore this type of client. There is a great opportunity because most SMEs are not yet digitized and with the pandemic we see that their interest has grown. They want to improve their efficiency with technology in payroll, invoices, schedules or vacations”.
Since its inception, the start-up has internationalized and today sells more abroad than in Spain. “We have a total of 6,000 clients. We are strong in France, Italy, Germany, UK and Portugal. Recently, we have entered the United States remotely and we have also opened physical delegations in Mexico and Brazil.” Despite its international presence, the decision-making center is still in Barcelona, where it employs more than 700 people at its headquarters in the Poblenou neighborhood.
Throughout this time, Factorial has financed its growth through contributions from venture capital funds, which have invested a total of 87 million euros, of which 66 million in the last round (closed last September and led by TigerGlobal). “We still have money to continue investing in growth. We do not rule out a new round but now, due to the situation, is not the best time to close it”, comment the entrepreneurs, who have less than 50% of the capital.