Drip Capital, a digital trade finance platform, has successfully raised $113 million in a recent funding round, combining equity and debt to further its growth and diversify its product offerings for small and medium-sized businesses (SMBs) in key markets such as India and the US.
This funding round includes $23 million in equity from Japanese institutional investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC), alongside $90 million in debt from the International Finance Corporation (IFC) and East West Bank. Existing investors also contributed to this round.
The new funds will be directed towards developing innovative trade finance solutions and expanding into additional trade facilitation services, including foreign exchange and sourcing.
Pushkar Mukewar, Co-founder and CEO of Drip Capital, commented, “Despite the global trade sector facing significant hurdles in 2022 and 2023, such as rising interest rates impacting margins and restricting capital access for SMBs, Drip Capital has positioned itself as a leading trade finance platform for SMBs in the US and India.”
He added, “We’ve achieved cash profitability and continued our business expansion despite these challenges. We are thrilled to welcome new investors and, together with our existing investors and debt partners, look forward to driving our next phase of growth.”
Established in 2016 by Wharton alumni Pushkar Mukewar and Neil Kothari, Drip Capital offers efficient working capital solutions, including payable and receivable finance. Based in California and Mumbai, Drip Capital helps SMBs optimize cash flows and supports sustainable business growth. By leveraging advanced AI technologies for enhanced credit risk assessments and streamlined operations, Drip has made significant strides in fintech innovation.
To date, Drip Capital has partnered with over 9,000 sellers and buyers in more than 100 countries, financing over $6 billion in trade transactions. The company has raised approximately $640 million in equity and debt funding from leading global investors.
