Fintech startup Drip Capital raises $40m in Series C funding

Photo: Drip Capital website

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.

This article was first published on livemint.com.

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.