Drip Capital, which offers SMEs trade financing products, has collected $25m in its Series B round.
The round was led by Accel, with participation also coming from existing backers Wing, Sequoia India, and Y Combinator. Trusted Insight and GC1 Ventures joined the series, making their first investment into Drip Capital.
With this capital injection, the company has raised a total of $45m in venture funding, and $55m in debt capital. Following the close of the new round, the company is looking to expand its product and reach new customers.
The company has been growing its international presence having recently launched in the United Arab Emirates, Mexico and the United States. Drip is also looking to offer a new service which will help businesses make more purchases from international suppliers.
India-based Drip uses electronic data and software to underwrite and finance cross-border transactions. Its automated solution leverages algorithms to underwrite the risk of all shipments.
Businesses can use Drip to access collateral-free working capital for their un-paid invoices, with the ability to add and track future invoices and payments online. Launched in 2016, the FinTech has financed over $500m in loans across 60 countries, it claims.
Accel partner Arun Mathew, “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.”
Earlier in the week, Hokodo received a €2m grant from Horizon 2020 to support the launch of its invoice insurance solution in Europe. The company provides financial services with insurance policies to cover their invoices in the event they are not paid.
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