Spain's Factorial raises $120 million in Atomico-led round

SAO PAULO (Reuters) - Spain's human resources startup Factorial said on Tuesday it raised $120 million in a funding round led by venture capital firm Atomico, giving it a $1 billion valuation.

The investment, which gave the company "unicorn" status, will be mainly used to expand its operations in Brazil, a market that currently accounts for 10% of Factorial's 7,000 corporate clients.

Factorial's plan is to increase its operations in the country fivefold next year, its chief executive, Jordi Romero, told Reuters, adding that Brazil would become its most important market.

The Barcelona-based startup provides software that automates human resources tasks such as recruiting and payroll to companies that average 100 to 200 employees.

"Our service allows smaller companies to have people management tools similar to those used by large corporations, which can help them both gain productivity but also to better understand how to retain talent," he said.

Singapore's state investor GIC, Tiger Global, CRV, K-Fund, and Creandum also participated in the investment.

(Reporting by Aluisio Alves; Writing by Peter Frontini; Editing by Kim Coghill)