This article is a part of Poland Unpacked. Weekly intelligence for decision-makers
The Spanish company Factorial, whose valuation crossed the unicorn threshold three years ago, is scaling up its operations. It is bringing its enterprise and HR management technology to Poland, where it will operate through local partners.
Poland has caught the attention of Factorial, a venture-capital-backed firm since its inception. Founded in 2016 by Jordi Romero and Bernat Farrero, the company has held unicorn status for three years, with a valuation exceeding EUR 1bn (around PLN 4.3bn). It has been steadily seeking new markets for its systems that streamline business processes and human-resources management. Poland is now its latest destination for expansion.
A new technology player on the local market
The company is now entering Poland and plans to reach its target clients – small and medium-sized enterprises – through local technology and business partnerships. Its executives stress that the move into Poland is a deliberate, long-term business investment.
“Factorial was founded ten years ago. Outside Spain, it has grown largely organically. Today, the company runs sales operations in France, Germany, Italy and Portugal, as well as in several dozen other countries. Now it is time for Poland – it is a very natural direction for our development. The Polish market is large and already relatively mature, with low unemployment. Crucially, companies along the Vistula are currently undergoing a digital transformation. This also applies to management and HR,” says Tomasz Wykowski, managing director of Factorial in Poland.
According to Factorial’s founders, Poland represents a fast-growing business ecosystem that readily absorbs new technological solutions, including those powered by artificial intelligence.
“Artificial intelligence is a tool for improving the quality of work, not for speeding it up at any cost. By automating less critical tasks and translating data into clear, practical insights, we will help Polish teams focus on what really matters: people, sustainable growth and better-informed decision-making,” says Jordi Romero, chief executive and co-founder of Factorial.
Good to know
The road to unicorn status
In its early phase, Factorial was backed by business angels. Venture-capital funds later followed. In total, the company has raised close to EUR 275m (around PLN 1.2bn), including from investors such as Tiger Global and CRV.
Factorial achieved unicorn status in 2022, when its valuation topped EUR 1bn (about PLN 4.3bn) after completing a Series C round. That round brought in roughly EUR 110m (around PLN 0.5bn), led by Atomico.
The company did not stop there. In 2024 and 2025, it secured a further EUR 185m (around PLN 0.8bn) through debt financing.
Factorial’s market-entry strategy in Poland
For now, Factorial does not plan to open an office in Poland. Its activities will be coordinated by a small Polish team based partly in Poland and partly in Spain. Much of the sales process will be handled by local partners, including DataRiseLab of Wrocław.
“Factorial operates several offices – in Barcelona, Madrid, Cologne in Germany, São Paulo and Mexico City. Whether we open an office in Poland in the future will depend on the pace of growth in this market. In an optimistic scenario, within a few years we expect to reach annual recurring revenue (ARR) of EUR 10m (around PLN 43m) in Poland. We sell a digital product delivered in a Software as a Service (SaaS) model. Still, support from partners on the ground is essential – not only to sell the product, but also to implement it close to the client and help with integrations,” says Tomasz Wykowski.
How does this strategy work in practice?
“Factorial has entered into a global technology partnership with Microsoft. In individual foreign markets, however, it operates through local strategic partners that are deeply embedded in the small and medium-sized enterprise sector. Although our product is global, some aspects require localization, knowledge of local regulations and close relationships with clients. We want the system to be tailored to users’ needs. A Polish-language version is already available,” Mr. Wykowski adds.
Expert's perspective
A fragmented yet promising market
Polish companies are showing growing openness to automating business processes, though their willingness to invest varies widely. Large, multinational organizations commonly rely on enterprise solutions, but decisions on selection and implementation are typically taken at headquarters abroad. Small and medium-sized firms, by contrast, tend to automate only selected tasks. Many other processes are still handled manually or with spreadsheets. While there is openness to digitalization, it is often expected to be low-cost, targeted and based on internal resources. The use of external service providers is frequently not embedded in day-to-day strategy.
Even so, the potential of the Polish market remains significant – particularly among organizations entering a growth phase and looking for scalable tools that do not require multi-year implementation projects. In this context, Software as a Service (SaaS) models have a clear advantage. They allow platforms to be deployed with lower upfront costs and less strain on IT resources. That said, it is worth noting that in many companies HR process automation is not yet a top priority, which may weigh on the pace of development in this segment of the market.
International expansion of the Spanish unicorn
Tomasz Wykowski adds that more than 50% of Factorial’s customers now come from outside Spain. In 2025, the company reached EUR 100m in annual recurring revenue (ARR), equivalent to about PLN 430m.
“A decade ago, Factorial launched with a platform whose core features included time tracking and leave management. Over time, the system evolved and became more comprehensive. It began to rely on native artificial intelligence and gained modules supporting HR processes and, more broadly, enterprise management. Factorial is an all-in-one system. It covers talent management, oversees internal operations, tracks financial flows and employee expenses, gathers data needed for payroll calculations, and analyses overall business performance,” Mr. Wykowski explains.
Based on his assessment, Poland’s HR market – much like those in many European countries – is highly fragmented.
“There are many competitors, but most offer solutions designed for specific, narrow segments. Few enter the market with comprehensive tools that span multiple business functions and allow integration with local systems such as ERP. That said, we will also have to contend with another ‘competitor’: a conservative approach to business management and limited openness to the digitalization of processes,” Mr. Wykowski argues.
Investor's perspective
What does the HR Tech sector offer investors?
Pracuj Ventures regularly publishes a map of solutions within Poland’s HR Tech ecosystem. In our view, the changes reflected on that map closely mirror broader market dynamics. The number of solutions continues to rise. Crucially, however, the landscape itself is also shifting. In autumn 2023, when the latest version of the map was released, it featured more than 150 solutions. More than two years on, it is already clear that around 10% will disappear, due to limited or negligible market activity. At the same time, some 25–30 new solutions will join. This is a natural life cycle for start-ups, not only in HR Tech.
The largest concentration of solutions is found in categories related to recruitment automation – from CV-screening tools, through various competence- and skills-assessment solutions and psychometric testing, to comprehensive applicant tracking systems (ATS), effectively CRMs automating the entire candidate life cycle. The segment of non-wage benefits is also developing rapidly, ranging from single-purpose tools such as lunch cards to broad platforms offering hundreds of different benefits, such as Worksmile.
When it comes to deal activity in Poland’s HR Tech market, heightened engagement from strategic players stands out. On the one hand, they are seeking to consolidate the market; on the other, to expand their portfolios of services and tools. Notable examples include the acquisition of Wellbee (a mental-health company) by Benefit Systems, the purchase of Kadromierz (a workforce planning and time-management solution) by Grupa Pracuj, and a series of acquisitions by Symfonia, including the takeover of Inewi, a time-tracking and shift-planning solution.
Key Takeaways
- The Polish HR technology market is described as competitive and highly fragmented, with a clear divide between enterprise solutions and tools for the SME sector. Many companies show interest in automation, but the scale and pace of investment vary, and HR process automation is often not a priority. The SaaS model in which Factorial operates is seen as attractive for organizations in a growth phase, seeking scalable solutions with lower upfront costs. At the same time, the company will have to operate in an environment where parts of the market remain conservative and less open to digitalization, which may affect the adoption speed of its solutions.
- Factorial, a Spanish HR technology company, has begun its expansion into the Polish market as part of a long-term international growth strategy. Founded in 2016, the company achieved unicorn status in 2022 and is backed by venture-capital funds. Poland was identified as a natural direction for expansion due to its large market, growing maturity, low unemployment, and ongoing digital transformation of businesses, including in management and HR. The company targets primarily small and medium-sized enterprises, which also constitute its key client segment in other markets.
- Factorial’s entry into Poland is based on a partnership model, without opening a local office at this stage. Sales and implementations will be carried out in cooperation with Polish technology and business partners, coordinated by a small team working across Poland and Spain. The company expects that the pace of market development will determine whether a local office will be established in the future, with an optimistic scenario projecting annual recurring revenue of EUR 10m (around PLN 43m) within a few years.