Do you know what’s going on in your company? Who is giving? Who is satisfied? Who should be promoted? Who should be given a little more money so they don’t go to the competition? The general answer to these questions is usually: “I have no idea.” And Factorial, working on this basis, has tripled its turnover in recent years.
Factorial HR was born in 2016 from the hands of Jordi Romero, Pau Ramón and Bernat Farrero, three computer engineers with experience in other startups found that the only department with little knowledge and technology when starting and running a company was completely obsolete. was human resources. “Ultimately, managing people becomes the key to any business: having good talent, developing it, knowing how to reward it and retaining it,” says Romero.
In this way, small and medium-sized companies were encouraged to create software that would automate much of the management of these human resources. “With this automation, people can improve their productivity, their costs, the amount of work they do, their satisfaction, their growth, etc. We saw that we could generate a lot of data about And with this data, we can help entrepreneurs make better decisions.”
This 2022, as they have done in the last two years, forecasts show that turnover will again triple from 10 million euros last year. In fact, for Jordi Romero, CEO of this Catalan venture, “the company’s biggest challenge in the near future is the proper management of workforce growth.”
In this line, Jordi Romero details: “Our main concern right now is the scale we have. We went from 40 employees to 100. We went from 100 to 300 and from 300 to 700. This relentless growth of the team brings with it many organizational challenges. Fortunately, the market we are in is huge. We have more than 10 million companies we can help with, a product that’s doing great, and big investors behind it. The challenge is to properly run and manage this volume that is exploiting us.”
four rounds
Factorial has completed four rounds of financing in this six-year lifetime: the first of 500,000 euros; the second of 2.8 million euros; third, 15 million; and the fourth for 67 million euros. It has more than 5,000 active small and medium business customers. “Companies with up to 1,000 employees,” he states.
When they first started, they started with a different model. They came to work with over 60,000 companies, but in a format they called freemium, it consisted of features available for free in exchange for signing up for their platform. They later charged fees for services such as payroll management. In 2019 they started to find the business model they have now. They stopped counting companies for free and focused on customers with a monthly subscription.
“For the first three years, we focused a lot on building the product, the software, and experimented with a variety of business models, according to Romero. The first did not work. Finally, we implemented the software & reservation application where we request annual or monthly subscription from our customers who pay a small amount for each employee they have on the platform. So, according to Factorial’s CEO, if the company grows, “we grow with it”. “And if the company is small, we are very, very cheap for it. It’s a very flexible system and that’s the model that allowed us to grow a lot,” he explains.
The group is present in Spain, Italy, Portugal, France, Germany, United Kingdom, Mexico, Brazil, Chile, Argentina and the United States. More than 400 people work at the 22@ headquarters in Barcelona. They also have an office in Mexico City, an office in Sao Paulo for Brazil, and an office in Utah to serve the United States.
Source: Informacion
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