Factorial, an all-in-one Human Resources (HR) platform for SMBs, announced the successful acquisition of Madrid-based Fuell, an expense management startup. This transaction marks the unicorn’s first major acquisition and product expansion in support of its mission to transform the HR industry and empower employees everywhere.
Fuell is one of the fastest-growing companies in the expense management sector, offering a unique solution focused on budget management and the simplification of back-office tasks such as VAT recovery and expenses categorisation. This move promises Factorial’s global clients an improved product suite that outperforms existing solutions, which typically focus either solely on HR or Expense Management.
Jordi Romero, founder & CEO of Factorial, said: “With this acquisition we are one step closer to achieving our mission of making Factorial the go-to all-in-one Business Management platform, by bringing an amazing financial product in-house, and investing in proven essential solutions for our customers.”
The acquisition of Fuell accelerates the steps Factorial has already taken into expanding its core HR offering into financial services and highlighting the company’s commitment to delivering an all-in-one Business Management platform for all things employee-related.
Moreover, this acquisition offers a promising opportunity for Factorial’s growth expansion beyond its main product offering and directly challenges well-funded Expense Management players in Europe. The global expense management software market is valued at $7 billion, and is projected to sustain a CAGR of 9% in the coming years.
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 newly integrated expense management offer to over 500,000 Factorial users worldwide.
“We are thrilled to see the journey of Fuell reach new heights through this acquisition by joining forces with the amazing team at Factorial,” commented Eduardo Ortiz de Lanzagorta, Fuell’s founder & CEO. “Our vision has always been to revolutionise expense management for businesses, and with Factorial’s expertise and resources, we are confident this vision will be achieved much faster.”
Founded by Eduardo Ortiz de Lanzagorta and Edgar Alvarez in 2019, Fuell has achieved remarkable growth over the past year, boasting a YoY increase of 250%. The company is backed by Y Combinator as well as investors such as Fin Capital, FJ Labs & K Fund, with the latter also being an investor in Factorial.
Factorial is acquiring the entirety of Fuell’s assets in a cash and equity deal, including its proprietary technology, clients and team. Fuell’s co-founders will continue to serve as advisors following the acquisition.
