We are pleased to announce that our fund Dalus Capital and the IFC (the private sector arm of the World Bank Group) have invested $10 million dollars in eFactor Network, which operates the most important electronic factoring marketplace in Mexico with more than 10k participants.
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 including non-banks, to optimize working capital needs online by means of efficiently capturing electronic discounts in real-time. eFactor value proposition to its clients includes the ability to operate on a single, multi-region, multi-currency, multi-institution solution.
eFactor Network fits Dalus investment strategy precisely as its tech-enabled financial products and innovations are focused on solving real companies’ working capital needs, while also focusing on providing improved liquidity with more competitive rates. The company is democratizing access to capital for thousands of Mexican companies.
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.
eFactor is expecting accelerated growth of its operations, increasing annual financing volume from $2.5B to more than $12.5B for nearly 60,000 suppliers from more than 500 Mexican corporates. Currently, eFactor Network’s marketplace has more than 100 large buyers and serves more than 10k providers with the support of 30 Mexican and foreign financing institutions. It 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 advancing in its process of institutionalization.
The company was co-founded and is led by Hector de la Garza, a great entrepreneur with ample experience in the supply chain financing space. We are very happy to be able to support Hector on his journey of taking eFactor to the next level.