Drip Capital Secures USD 113 Million in Equity and Debt Funding

Drip Capital, a digital trade finance platform, has announced a successful fundraising round totaling USD 113 million, a combination of equity and debt. This funding will be used to accelerate the company's growth and expand its product portfolio to cater to small and medium-sized businesses (SMBs) in key markets like India and the US.

Equity Investment from Japanese Investors

The equity portion of the funding round comprises USD 23 million, secured from two Japanese institutional investors: GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC). This investment signifies a strategic partnership that will contribute to Drip Capital's expansion and innovation in the global trade finance landscape.

Debt Funding from International Finance Corporation and East West Bank

The debt funding component, totaling USD 90 million, was provided by the International Finance Corporation (IFC) and East West Bank. This injection of capital reflects the confidence these institutions have in Drip Capital's business model and its potential to address the financing needs of SMBs in the international trade sector.

Expanding Product Portfolio and Trade Facilitation Services

The secured funding will be strategically allocated to further develop innovative trade finance solutions, particularly in the areas of forex and sourcing. Drip Capital aims to expand its offerings beyond traditional trade finance, providing a comprehensive suite of services that empower SMBs to navigate the complexities of international trade.

Strengthening Position as a Preferred Trade Finance Platform

Despite the challenges faced by the global trade sector in 2022 and 2023, including rising interest rates and limited capital access for SMBs, Drip Capital has emerged as a preferred trade finance platform in the US and India. The company's focus on providing efficient working capital solutions, including both payable and receivable finance, has proven to be a valuable asset for businesses looking to optimize their cash flows and drive sustainable growth.

Drip Capital's History and Impact

Founded in 2016 by Wharton alumni Pushkar Mukewar and Neil Kothari, Drip Capital has established a strong presence in the trade finance landscape, providing innovative solutions that leverage advanced AI technologies to enhance credit risk assessments and streamline operations.

• The company has collaborated with over 9,000 sellers and buyers across 100+ countries, financing more than USD 6 billion in trade transactions.
• Drip Capital has raised approximately USD 640 million in equity and debt funding from top-tier global investors, a testament to the company's track record of success and its commitment to supporting SMBs in the global marketplace.

Key Takeaways: Drip Capital's Funding Round

• Drip Capital secured a combined USD 113 million in equity and debt funding, signifying strong investor confidence in the company's growth potential.
• The equity funding was provided by GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC), highlighting the strategic importance of the Japanese market for Drip Capital.
• Debt funding from the International Finance Corporation (IFC) and East West Bank underscores the company's commitment to expanding its product portfolio and offering a wider range of trade finance solutions to SMBs.
• The funding will be used to accelerate Drip Capital's growth and expand its reach to key markets like India and the US, further solidifying its position as a leading provider of trade finance solutions to SMBs.