Dalus Capital and the IFC made a US$10m investment in Mexican fintech eFactor Network and financial intermediary eFactor Diez.
(Press Release) eFactor Network (efactornetwork.com), which operates the most important electronic factoring marketplace in Mexico with more than 10,000 participants, has announced an equity investment of $10m dollars by the International Finance Corporation (IFC) and Dalus Capital (Dalus) for consolidating growth and developing new products.
eFactor Network is a leader in providing financing and working capital optimization solutions via its marketplace on which it integrates the supply chains of large national and foreign corporates. The eFactor Network platform allows large buyers, suppliers and financial institutions (banking and non-banking), to optimize working capital needs online by means of efficiently capturing electronic discounts in real-time. The most important value proposition eFactor Network has provided its clients during its 10 years of existence is allowing those clients to operate on a single, multi-region, multi-currency, multi-institution solution.
“eFactor Network helps us build a Mexico that is a more productive world player by democratizing access to capital for thousands of Mexican companies. Its financial products and innovations are focused on solving companies’ working capital needs, while also focusing on providing qualified risk and liquidity with more competitive rates,” indicated Rogelio de los Santos, Managing Partner of Dalus Capital.
In Mexico, the primary source of financing remains companies’ own supply chains. According to the Mexico´s Central Bank, 76.5% of companies relied on their own suppliers for financing and 34.1% utilized a commercial bank loan during the final quarter of 2017.1
“We expect accelerated growth of our operations once we increase our annual financing volume from
$2.5b to more than $12.5b, which would allow us to provide our services to nearly 60,000 suppliers
from more than 500 qualified Mexican corporates” confirmed Hector de la Garza, founding partner
and CEO of eFactor Network. Currently, eFactor Network’s marketplace has more than 100 large
buyers from different corporate groups and serves more than 10,000 providers with the support of 30
Mexican and foreign financing institutions.
“In the age of ERPs, on-demand availability of data and electronic invoicing, factoring can no longer
be a mundane, isolated and mostly manual process. Companies like eFactor bring supply chain
finance to the 21st century and into the realm of capital markets, creating unprecedented efficiencies,
competition and liquidity. We are happy to start this journey with them, to unlock billions of dollars in liquidity to tens of thousands of small and medium suppliers. eFactor will help IFC achieve an
important development objective by strengthening a critical piece of infrastructure for trade finance in Mexico.” said Andi Dervishi, Chief Investment Officer and global head of Fintech Investments for IFC,
the private sector arm of the World Bank Group.
“eFactor Network continues to advance in its institutionalization process upon receipt of its first round of institutional capital from investors such as the IFC and Dalus Capital, which have provided access
to a larger market base and have also provided a greater sophistication in the fintech space” commented Hector de la Garza.
eFactor Network will allocate its investment to perfecting the quality of its service by increasing its
installed capacity in order to reach thousands of additional clients, to developing innovative financial products for its platform with the end of continually improving its value proposition for its clients, and to advanzing in its process of institutionalization.
1 Citation Mexico´s Central Bank report: https://goo.gl/6f9v57