Mexico-based fintech Intelligential grows 150% with ECL
Intelligential is a pioneering technology company that builds comprehensive solutions for financial institutions, including banks and startups.
Context
Intelligential is a pioneering technology company that builds comprehensive solutions for financial institutions, including banks and startups. Their platform enables companies to create and manage financial products, handle loan processes, offer online credit applications, conduct credit scoring, and generate detailed monitoring reports. What sets Intelligential apart in the Mexican market is its end-to-end solution that seamlessly covers all financial processes, making it a unique and valuable tool for its clients.
Key takeaways
- Intelligential secured 150% growth year-over-year with Efficient Capital Labs’ financing.
- ECL financing enabled Intelligential to expand product lines, improve cash flow, and pay down high-interest debt.
Challenges
Despite their innovative platform and market potential, Intelligential faced funding challenges to growth:
Challenge 1: Preserving Ownership and Strategic Growth
Intelligential had been bootstrapped for five years, and the founders were was determined to continue growing the company without diluting ownership by taking on equity investors. The founder was also concerned that bringing in venture capital could pressure the company into an aggressive growth strategy that didn’t align with their vision of stable, sustainable growth.
Access to Capital as a Software Startup
As a software company, Intelligential found it challenging to secure traditional loans from financial institutions, which were reluctant to lend to tech startups without physical assets. The company explored other non-dilutive financing options, but avenues like crowdfunding were unlikely to generate the significant capital needed for their growth plans.
Solutions
In 2024, Intelligential secured financing from ECL. ECL provided the necessary capital without requiring the company to give up equity, with a transparent flat fee on the financing. The financing was strategically integrated into their working capital and used in several key areas:
Investment in a New Line of Business:
Intelligential allocated part of the capital to develop a new line of business, which quickly found a strong product-market fit, contributing to the company’s growth.
Advanced Payments to Providers
The financing allowed Intelligential to make advanced payments to providers, ensuring smooth operations and accelerating the development of their new business line.
Debt Repayment
Intelligential used a portion of the funds to repay more expensive, high-interest debt, improving their financial position and reducing overall costs
Results
Intelligential experienced profound growth in 2024. By choosing non-dilutive financing through ECL, Intelligential not only preserved its ownership and strategic direction but also unlocked new growth potential, setting the stage for future success.
- Significant Growth Acceleration: In 2024, Intelligential’s growth rate skyrocketed from 30% year-on-year to 150%, marking their most successful year yet
- Improved Cashflow Management: The company was able to close existing cashflow gaps, ensuring a more stable financial footing and enabling continued investment in growth opportunities.
