Factorial has raised a $150m Series D at a $2.5bn valuation, becoming one of Europe's most valuable AI scaleups as investors bet on the company's transformation from HR software provider to AI-powered workforce platform.Founded in 2016, Barcelona-based Factorial says it has spent the past year rebuilding its SaaS platform around AI agents capable of carrying out tasks across HR, finance and IT workflows. Factorial now serves more than 16k businesses across over 90 countries.“The next decade of enterprise software will belong to the companies that rebuild themselves around AI, not the ones that bolt it on,” said General Catalyst partner Pranav Singhvi. “Factorial is doing exactly that.” The company’s latest round was led by General Catalyst, marking the VC firm's first direct equity investment in the company. Existing backers including Atomico and Four Rivers also participated.Alongside the equity financing, General Catalyst committed up to an additional $540m through its Customer Value Fund (CVF), a non-dilutive financing vehicle designed to fund startups’ customer acquisition costs. Combined, the commitments bring the total capital available to Factorial to more than $700m."Ten years ago we built Factorial as a SaaS company. Today we are an AI-first company," CEO and cofounder Jordi Romero said in a statement. “We have reset the product, the architecture and the way our customers run their work around AI agents.” Factorial's AI pivot centres on a product called Factorial One, which uses a small number of AI agents to represent both employers and employees, rather than deploying large numbers of specialised agents.A significant portion of the new funding will be directed towards Germany, Factorial said, which the company has identified as its top international growth market. Factorial plans to open a new office in Munich and to expand hiring across sales, customer success, product, marketing and engineering roles over the next year.The startup said it also plans to accelerate expansion in France, Italy and Portugal as it looks to deepen its presence across Europe.