Fintech startup Drip Capital raises $25m from Accel, Sequoia, others

Photo: Mint

Trade finance firm Drip Capital has raised $25 million in a Series B funding round led by Accel, with participation from existing investors Wing VC, Sequoia India and Y Combinator.

New investors in the round included Trusted Insight and GC1 Ventures, per a company statement.

In all, the company has raised $45 million in equity financing and an additional $55 million in debt financing to date.

“We are expanding our global footprint and launching in the United Arab Emirates, Mexico and the United States. With new funding in place, we can replicate the model we’ve created in India in other geographies by scaling the product, engineering, sales and marketing teams,” the company said in a statement.

Drip Capital also aims to add new offerings to provide working capital to importers.

The startup uses electronic data and software to rapidly underwrite and finance cross-border transactions. With an automated system for financing transactions, Drip claims to provide seamless customer experience and can finance a shipment with the click of a button.

On the backend, Drip integrates with over 20 electronic data sources and has built proprietary algorithms to underwrite the risk of every shipment.

The company said it has funded more than $500 million of trade, and served over 400 exporters and 500 importers across more than 60 countries so far. It has also expanded to over 120 employees across six offices – Palo Alto, Mumbai, Delhi, Bengaluru, Mexico City and Dubai.

“SMB exporters in emerging markets contribute to over $2 trillion of global trade flows. Due to inefficient local financial systems, half of the small businesses get turned down by banks for the capital they need, many of which are creditworthy. Drip’s technology and proprietary underwriting enables it to identify these creditworthy SMBs and provide them with the working capital they need to grow,” said Arun Mathew of Accel.

Drip Capital had raised $15 million in a Series A funding round from Accel, Sequoia India, Wing VC and others in June last year. Prior to this, it raised $5 million in seed funding from Y Combinator, Accel, and others.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.