Factorial grows 70% with a focus on Germany and hires 500 people

Factorial is experiencing a period of rapid business expansion. The technology group, which specializes in selling software to small and medium-sized businesses, claims to have recorded 70% revenue growth and increased its workforce by 500 people this year.

As usual, the Barcelona-based company does not share its net revenue. This time, it publishes its annual recurring revenue (ARR) metric and claims to have reached the €100 million milestone. "In the business sector linked to enterprise software, it is common to use ARR because contracts are signed over several years, and this metric provides a comprehensive view of the business's potential," explains Jordi Romero, CEO and co-founder of the company, considered a unicorn for surpassing €1 billion in valuation.

According to the latest data available in the Commercial Registry, Everyday Software (through which Factorial operates) earned €23 million in 2023, compared to €11.8 million the previous year.

The company moves to new offices in the Poblenou neighborhood

Beyond the uncertainty surrounding current-year revenue, Romero explains that the 70% growth is above expectations and is largely due to the growth of its business in Germany. "We have closed a commercial agreement with the Datev group, a small business management company, which is boosting sales more than we expected," Romero explains. Factorial typically collaborates with Microsoft and financial institutions to distribute its technology.

Due to this growth in Germany, Factorial has opened a branch in Cologne that currently employs around fifteen people. "If this project works, we will open offices in France, Italy, and Portugal, which are the other European countries we are focusing on," he comments. Spain accounts for just under half of its revenue, while the remainder is distributed among European countries (France being the most significant), Mexico, and Brazil. For now, Factorial feels comfortable where it is, although it doesn't rule out entering a neighboring country.

The growth strategy consists of acquiring competing companies. Romero explains that Factorial has €100 million in cash, from the last capital increase in 2022, which is still intact, waiting to take over rival companies. "We have plenty of resources to grow and we estimate reaching net profit within two years," adds the entrepreneur, who rules out further investment rounds.

With this growth, the company has hired 500 people this year, bringing its total workforce to 1,400. The vast majority work at the Barcelona headquarters, located in the Poblenou neighborhood. The company has just announced that it will move to larger offices, measuring 9,200 m2, to accommodate all this growth.