Stocked with American money, Catalan HRtech Factorial lands in Brazil

RIO DE JANEIRO, BRAZIL – Barcelona-based HRtech startup Factorial, which automates HR processes for businesses, is opening a branch office in Brazil. The entry into the country comes after the startup received a US$80 million in a Series B investment round led by Chase Coleman’s New York-based Tiger Global.

Factorial is one of the fastest-growing start-ups in Barcelona. Its software allows HR directors and managers to spend less time on administrative issues while focusing more on teambuilding.

The funding comes just over a year after the company received an A round. Last April, the company had received US$16 million from CRV, Creandum, Point Nine, and K Fund. Previously, in 2018, it had received 2.8 million euros from Point Nine, K Fund, Itnig, and Creandum.

In June, Factorial had already opened an office in Mexico, its second after its Barcelona headquarters. With the new round, it is also planned to establish its own office in the United States. Over 60 thousand companies from 60 countries use the startup’s HR software. Here in Brazil, it already serves companies such as insurance company Kakau and agribusiness Agrotools.

Despite the political roller coaster, the country continues to be very attractive to new entrants. With the arrival of Factorial, the list of international companies that have recently set up shop in Brazil becomes even longer, in addition to names such as Deel, BYJU’S, and Gupshup.

“We believe Brazil will be one of the biggest markets for Factorial. It is continental and because of the advances in entrepreneurship in the country and the acceptance of new technologies. We see the country as a cradle of innovation and with great growth potential,” says Jordi Romero, president and co-founder of Factorial.

HRtech was founded in 2016, has 120 employees, and plans to reach its third year of tripling its size in 2021. It also aims to repeat this feat in 2022, with Brazil playing a leading role.

Factorial’s HR management software centralizes all HR and human resources processes across the company. These include recruitment and selection, admissions, timekeeping, leave and absence, performance appraisals, feedback, and payroll variables. Subscription pricing starts at R$10 per month per employee on an annual plan.

The HR areas of companies have become an interesting niche for startups due to the low level of innovation of the tools used. The movement that started in the recruitment and selection area is now very active in the benefits area, with names such as Caju and Education Journey dedicated to developing new formats.

ABOUT FACTORIAL

Factorial is a cloud-based human resources (HR) solution that caters to small businesses across various industry verticals. Key features include a time-off manager, an organizational chart generator, a document manager, and more.

Factorial helps HR departments manage their employees’ holidays, absences, and sick leaves. Users can accept or reject employee requests directly from the solution. Users can also monitor employees’ compensation and offer tailored compensation plans to different employees.

Factorial’s employee portal gives employees access to their personal accounts to request holidays, notify their employers of sick leaves and check their paychecks.

The portal also helps managers communicate and share resources with their team members. Services are offered as an integrated suite, or users can purchase individual modules. Support via phone and email is included.

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