eFactor receives USD$10m from the IFC and Dalus Capital to accelerate its growth
Monterrey, México (04 June 2018) - 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.
More about eFactor Network
Built by the best financial, technological and customer service talent, eFactor Network (efactornetwork.com) is a Mexican fintech company that provides, via its web platform, electronic factoring to suppliers which seek to provide discounts on accounts receivable in return for advance payment. eFactor Network’s multi-institution, multi-region and multi-currency model allows companies to mitigate financial risk by means of funding diversification, as well as increase their scale via greater financing offerings by means of integrating national and foreign banks in the currency which meets their payment terms with their providers. eFactor Network operates in pesos, dollars and euros with suppliers in Mexico and foreign suppliers located in more than 20 countries. eFactor Network is led by Hector the la Garza and has offices in Monterrey, Mexico City and Bajío.
More about eFactor Diez
eFactor Diez ( efactordiez.mx ) is a financial intermediary which offers value-added services to eFactor Network users, seeking to integrate more financing sources that can inject liquidity into the market at competitive rates.
More about IFC
IFC ( ifc.org ) — a sister organization of the World Bank and member of the World Bank Group—is the largest global development institution focused on the private sector in emerging markets. We work with more than 2,000 businesses worldwide, using our capital, expertise, and influence to create markets and opportunities in the toughest areas of the world. In FY17, we delivered a record $19.3 billion in long-term financing for developing countries, leveraging the power of the private sector to help end poverty and boost shared prosperity. For more information, visit www.ifc.org
More about Dalus Capital
Dalus Capital’s vision is to support the best entrepreneurs in Mexico and Latin America that are creating high-growth companies, based on innovative technologies or business models. These companies, together with the capital and experience Dalus Capital contributes, can grow their business and earn recognition as some of the region’s greatest success stories. Dalus Capital is a member of the Draper Venture Network (drapernetwork.com), an organization of independent investment funds from 4 continents which collaborate and co-invest in projects. Dalus Capital is led by Diego Serebrisky and Rogelio de los Santos, and has offices in Mexico City and Monterrey.
1 Citation Mexico´s Central Bank report: https://goo.gl/6f9v57