Drip Capital Inc., a digital cross-border trade finance platform for small and medium businesses (SMBs), on Thursday said it has raised $175 million in fresh capital to power its next phase of growth. Funds raised include a $40 million Series C equity investment and $135 million in warehouse debt facilities. To date Drip Capital has raised about $525 million in equity and debt funding.
San Francisco-based TI Platform led the Series C investment round alongside participation from new and existing investors, including Accel, Sequoia, Wing VC, Irongrey, and GC1 Holdings. The new capital also includes a $100 million warehouse credit facility with Barclays Investment Bank and a $35 million increase in the existing facility with East West Bank (EWB).
Founded in 2016, Drip Capital leverages machine learning and cloud technology to finance cross-border transactions, allowing SMBs to free up working capital and invest in growth. Drip Capital offers digitized trade financing solutions in markets such as the US, India, and Mexico by providing SMB clients access to working capital and currently works with over 3,500 sellers and buyers across 80 countries. To date, the company has financed more than $2 billion worth of global trade transactions spanning more than 80 countries. It serves SMBs across India, Mexico, and the US, providing access to collateral-free credit.
“The covid-19 pandemic has put severe pressure on cash flows of exporters and importers alike. This strain is being felt most by SMBs who have never had easy access to capital,” said Pushkar Mukewar, chief executive officer and co-founder of Drip Capital. “We are excited to welcome TI Platform to help further our mission to make global trade easy and accessible to SMBs across the world. In addition, the strategic partnerships with leading banks such as Barclays and EWB are also a significant milestone for us. It is a strong testament to the quality of our assets and the ability to scale our customer base rapidly.”
Drip Capital will use the new funding to scale its business over the next 18 months. It will invest in products and technology and accelerate go-to-market in existing and new geographies such as South Asia and Latin America.
The company also plans to launch a new trade facilitation platform designed to alleviate the pain points of small businesses, while collaborating with participants across the value chain, including shipping lines, payment processors, and insurance providers.
“Global Trade Finance is expected to be a $10 trillion market by 2026. Drip is comfortably established as the market leader in this space, providing SMEs with vital access to financing. Based on strong unit economics, powerful tech-driven underwriting, and growth trajectory, TI Platform considers it as a good candidate for breakaway upside,” said Alex Bangash, Managing Partner of TI Platform.
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