World Bank's IFC provides USD 10 mn to fintech company eFactor Network
IFC and Dalus Capital provided a US$10 million capital investment to eFactor Network, a Mexican fintech company specialized in factoring and working capital.
IFC, a member of the World Bank Group, and Dalus Capital, a venture capital fund focused on supporting early stage and innovative businesses in Mexico and Latin America, provided a US$10 million capital investment to eFactor Network, a Mexican fintech company specialized in factoring and working capital, to consolidate its growth and the development of new products.
Through a multifunding and multicurrency electronic factoring marketplace, eFactor Network allows the connection between large buyers, suppliers and financial institutions (banking and non-banking) to optimize working capital by realizing electronic discounts in real time.
"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.
Currently, the eFactor Network technology platform has more than 100 large buyers from different corporate groups, and serves more than 10,000 suppliers with the support of 30 financing institutions from Mexico and abroad.
"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.
"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 Héctor De la Garza, CEO of eFactor Network.
eFactor Network will allocate the investment to develop innovative financial products in its marketplace, with the purpose of continuously improving its offer of value to the client and advancing its process of institutionalization. The factoring industry is perceived an important financing alternative for small and medium businesses because it provides an integrated service that includes the purchase of trade-related receivables, trade bill collection, and administration. IFC considers that these services allow small and medium enterprises to take advantage of strong growth opportunities and overcome capital and access-to-finance constraints.