Drip Capital, a prominent digital platform specialising in trade finance, has successfully secured a $113m funding round.
The funding includes a $23m equity investment from Japanese institutional investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC), coupled with a significant $90m debt financing spearheaded by the International Finance Corporation (IFC) and East West Bank.
Positioned at the cutting edge of the FinTech sector, Drip Capital leverages sophisticated AI technologies to facilitate accurate credit risk assessments, streamline operations, and enhance the overall customer experience. This strategic infusion of capital is earmarked to accelerate market expansion and foster the development of innovative products tailored to meet the evolving needs of customers.
The newly acquired funds will be instrumental in driving Drip Capital’s growth initiatives. According to Co-founder and CEO Pushkar Mukewar, despite the global trade sector grappling with challenges such as rising interest rates and constrained capital access, Drip Capital has solidified its standing as the go-to trade finance platform for SMBs in the US and India. Mukewar highlighted the company’s journey to cash profitability and its successful business expansion during these turbulent times.
Chief Business Officer Karl Boog shed light on the achievements in their North American operations, noting that nearly $1bn has been financed for US and Canadian SMBs in recent years. Boog emphasised the uniqueness of Drip’s Payable Finance offering, which allows customers to manage their supplier invoices more effectively by extending payment terms up to 120 days.
Drip Capital’s strategic growth and innovative solutions have not gone unnoticed by its investors and lenders. Ryu Muramatsu, Executive Vice President at GMO Payment Gateway, expressed pride in the company’s trajectory from its inception and is enthusiastic about deepening their strategic partnership. Similarly, Keiji Matsunaga, General Manager of Digital Strategy Department at SMBC, voiced excitement about enhancing Japan-India corridor activities and optimising global trade through this collaboration.
In terms of previous investments, Drip Capital has consistently attracted funding that underscores its role as a transformative force in digital trade finance.
“In 2022 and 2023, the global trade sector faced significant challenges, including rising interest rates that squeezed margins and restricted capital access for SMBs. Despite these challenges, Drip has emerged as the preferred trade finance platform for SMBs in the US and India,” Pushkar Mukewar stated. “We’ve achieved cash profitability and expanded our business during this period. We are excited to welcome our new investors, and alongside our existing investors and debt partners, are ready to drive our next phase of growth.”
“On the debt capital raise, having financed over $6 billion in trade in the past eight years, we have successfully scaled our capital providers. We are thrilled to welcome additional capital from East West Bank and the IFC, the world’s largest development finance institution,” added Karl Boog.
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