Factorial Secures $80M in Venture Debt to Boost Growth
Deal News | Jan 27, 2025 | Aim Group
In 2023, Spain-based HRTech company Factorial secured an $80 million debt financing agreement with General Catalyst to enhance its sales and marketing investments, as reported by El Pais and corroborated by regulatory filings from its parent company, Everyday Software. The financial arrangement entails General Catalyst advancing funds up to 80% of Factorial's growth expenses at each growth period, followed by quarterly repayments including an agreed-upon return rate. Everyday Software experienced a significant increase in revenue by 110% last year, despite a rise in operating losses to $44.7 million. The firm attributed a quarter of its customer base expansion and an increase in average revenue per customer as primary growth drivers. A previous Series C funding round in October 2022, valuing Everyday Software at over $1 billion, boosted its capital and left the company with substantial cash reserves.
Sectors
- HR Technology
- Private Equity & Venture Capital
Geography
- Spain – Factorial and its parent company, Everyday Software, are based in Spain.
- European Union – A significant portion (60%) of Factorial's revenue originates from other EU markets, highlighting its geographic influence.
Industry
- HR Technology – Factorial operates in the HR Tech industry, providing software solutions for human resource management.
- Private Equity & Venture Capital – The article discusses debt financing and prior Series C funding, implicating private equity involvement from General Catalyst.
Financials
- $80 million – Amount of debt financing raised by Factorial from General Catalyst.
- $120 million – Amount raised in Everyday Software's Series C funding round in October 2022.
- 25 million – Factorial's revenue in 2023, reflecting a 110% year-on-year increase.
- 44.7 million – Everyday Software's operating losses in 2023, a 42.4% increase from previous year.
- 114 million – Total assets of Everyday Software at the end of 2023.
- 93.7 million – Cash reserves of Everyday Software at the end of 2023.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Factorial | Target | Company | A Spain-based HRTech company focused on facilitating human resource management solutions. |
| General Catalyst | Bidding Company | Company | A venture capital firm that provided $80 million in debt financing to Factorial. |
| Everday Software | Parent Company | Company | The parent company of Factorial, overseeing financial and strategic activities. |
| GC Customer Value Arranger | Subsidiary | Company | A subsidiary of General Catalyst responsible for arranging the debt financing. |