Drip Capital, a digital cross-border trade finance platform for small and medium sized businesses, has collected $175m in fresh funding.
The capital injection includes $40m of Series C funding and $135m in warehouse debt facilities.
San Francisco-based TI Platform served as the lead investor of the Series C funding, with support also coming from Accel, Sequoia, Wing VC, Irongrey and GC1 Holdings. As for the debt facility, Barclays Investment Bank supplied $100m and East West Bank provided the remaining $35m.
With the fresh funds, the FinTech company plans to invest in products and technology and bolster its go-to-market efforts in existing and new geographies, including South Asia and Latin America.
Drip Capital is also looking to launch a new trade facilitation platform that will alleviate pain points of small businesses while collaborating with participants across the value chain, including shipping lines, payment processors, and insurance providers.
Founded in 2016, Drip Capital is aimed at fixing the $3trn global trade finance gap. The platform leverages machine learning and cloud technology to finance cross-border transactions, empowering SMEs to free up working capital and invest in growth.
Drip Capital claims to have financed over $2bn worth of global trade transactions, spanning 80+ countries. It served SMEs in India, Mexico and the US.
Drip Capital CEO and co-founder Pushkar Mukewar said, “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.
“We are excited to welcome TI Platform and Barclays to help further our mission to make global trade easy and accessible to SMBs across the world.”
Following the close of the investment, the FinTech company has raised a total of $525m in equity and debt funding.
The company previously raised a $40m warehouse credit line from California-based East-West Bank in March 2021.
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