The factorial unicorn reaches 100 million earnings: “Profitability does not worry us, the important thing is to have a box to continue growing” | Companies | EUROtoday

The start-up Factorial, changed into unicorn In 2022 after reaching an evaluation of 1,000 million {dollars}, it has reached one other symbolic objective, that of billing, reaching 100 million {dollars} in income. “In the world of start-ups The concept of the assessment became very fashionable, but the ecosystem itself has seen that it does not always reflect the real size of a start-up”, Jordi Romero, CEO and co -founder of Factorial, explains via a video name. “Billing shows that there is a market behind our proposal, and in our category there are very few companies in Europe that have reached 100 million, much less that they have our growth rate, which is 70% per year,” he provides. However, the billing alone doesn’t present whether or not the enterprise is stable or not. Factorial doesn’t share the info about its internet consequence or gross exploitation consequence, however Romero explains that the start-up It isn’t but worthwhile. “Profitability does not worry, because the important thing for us is cash flow. As long as we have a box to grow and not depend on investors, our priority is to grow,” explains the supervisor.

Romero based the corporate along with Bernat Farrero and Pau Ramon in 2016, but it surely was not till 2019 once they discovered their enterprise mannequin: to supply the technological service in order that small and medium enterprises that had not digitized human assets processes or had finished precariously, had an environment friendly technological device to take action. This platform for human assets administration has ended up changing into an integral enterprise administration program that gives companies to greater than 14,000 firms in 10 international locations. “Actually six years ago we started charging for the softwareand reaching 100 million dollars of billing in just six years is an important milestone, ”explains Romero.

Like all start-upsFactorial has supported from the beginning in several rounds of investment, the last one of 120 million dollars in 2022, led by Atomico, which increased the valuation of the company and made it a unicorn. Since then they have not made any new investment round: “We are an organization that grows quite a bit and that additionally doesn’t eat field, as a result of we finance our progress with the assets now we have of our clients,” Romero explains.

This growth means intensifying its presence in Spain while opening new markets – the company has opened offices in Colonia (Germany) with about twenty workers, and this month will open its new headquarters in Barcelona to accommodate its 1,400 employees, who have added 500 jobs this year – and also invest intensely in product development. “For that it is rather vital to have money circulate, and now we have it,” says the manager.

The cash flow comes from customers, but there plays an important role in the Catalyst General Risk Capital Fund. In April 2024 this fund signed an investment of 80 million dollars (which a year later extended to 200 million) to finance the growth of the startup. Customers do not pay large subscriptions, but pay as they use the service, and the background anticipates factorial the cash flow that would finally get with customers. At the moment, profitability is not a problem: “We should not anxious, the vital factor is the field and the precedence is to develop. Logically, how way more clients and enterprise now we have, the extra we are going to strategy profitability,” says Romero, who emphasizes that in this company the economies of scale are key.

The next goal is now to reach 1,000 million dollars. “We have found that in a factorial we’re in a really massive market, we’re rising very quick in Italy, France or Portugal, as a result of we resolve an issue that many firms have,” explains Romero. Given this growth, factorial has already been purchased for purchase, but the founding team has no intention of selling: “We like what we do and don’t want anybody’s assist. Our horizon is to stay unbiased and proceed to develop.”