Factorial Acquires YC-Backed Fuell, Expands Into Expense Management Market
MIAMI, Oct. 3, 2023 /PRNewswire/ -- Factorial, a leading provider of human resources software solutions, announced the acquisition of Fuell, an expense management startup based in Spain. This transaction marks Factorial's first acquisition and product expansion, making it Europe's first and largest integrated HR and expense management platform.
Founded in 2019 by Eduardo Ortiz de Lanzagorta and Edgar Alvarez, Fuell provides a unique expense management solution focused on budget management, while also simplifying back-office tasks such as tax refunds and expense categorization. Witnessing a year-over-year growth rate of 250 percent, Fuell is backed by Y Combinator and has garnered support from investors including Fin Capital, FJ Labs, and K Fund with the latter being an investor in Factorial.
The expense management industry is growing across industries. According to Fortune Business Insights, the industry is projected to grow from $6.51 billion in 2022 to $12.05 billion by 2029, at a compound annual growth rate of 9.2 percent.
"With this acquisition, we are one step closer to our mission of making Factorial 'the' all-in-one business management software platform," says Jordi Romero, Co-Founder and CEO of Factorial. "This move promises our clients an improved product suite that outperforms existing solutions, which previously focused on HR and expense management individually.
Factorial recently expanded its core HR offerings to include financial services. This acquisition further accelerates their product's development, provides expertise related to the industry, and highlights the company's commitment to delivering an all-in-one platform for employees in SMBs.
"We are thrilled to witness Fuell's trajectory soar to new heights through this acquisition, uniting with the exceptional team at Factorial," says Eduardo Ortiz de Lanzagorta, Founder & CEO of Fuell. "Our vision has been to redefine expense management for businesses, and with Factorial's expertise and abundant resources, we are accelerating towards achieving this vision."
Fuell's entire team will join Factorial's more than 1,000 global team members as part of the acquisition, and will continue to lead the product development and roll-out of the new integrated expense management offer to Factorial's users.
In this transition, Fuell's entire team will integrate with Factorial's global workforce. This unified force will spearhead the ongoing product development efforts and facilitate the deployment of the integrated expense management solution to Factorial's expansive user base, comprising more than 500,000 clients across the globe.
Factorial is acquiring the entirety of Fuell's assets in a cash and equity deal, including its proprietary technology, clients, and team. Their co-founders will continue to serve as advisors following the acquisition.
About Factorial Founded in 2016, Factorial offers people-centric solutions for HR teams, automating processes so they have more time to dedicate to the people within their organization. With over 75,000 users across 65+ countries, Factorial serves clients such as KFC, Booking.com, and Whisbi. Factorial became Europe's newest Unicorn in 2022 following a Series C investment round. For more information, please visit https://factorialhr.com/.