Drip Capital Secures $113 Million to Propel Global Trade Finance Innovation for SMBs

Drip Capital, a leading digital platform for trade finance innovation for SMBs, has successfully raised $113 million in a new funding round. This significant investment includes $23 million in equity from Japanese institutional investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC), and $90 million in debt financing led by the International Finance Corporation (IFC) and East West Bank.

Over the past two years, Drip Capital has experienced remarkable growth, quadrupling its revenue and doubling its customer base. The company has expanded its services for small and medium-sized businesses (SMBs) by integrating forex and risk analytics solutions with its core trade financing products. This new funding will expedite market expansion and support the development of innovative products tailored to customer needs.

Leveraging Advanced AI Technologies

Drip Capital has been at the forefront of utilizing advanced AI technologies to enable efficient credit risk assessment, streamline operations, and enhance customer experiences. By continuing to invest in AI, Drip aims to revolutionize the trade finance sector, making it more efficient and inclusive.

Overcoming Global Trade Challenges

Despite the global trade sector facing significant challenges in 2022 and 2023, including rising interest rates and restricted capital access for SMBs, Drip Capital has emerged as the preferred trade finance platform for SMBs in the US and India. Pushkar Mukewar, Co-founder and CEO of Drip Capital, highlighted the company’s journey to cash profitability and its successful business expansion during these turbulent times.

Strategic Partnerships and Future Growth

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 and enthusiasm for deepening their strategic partnership. Similarly, Keiji Matsunaga, General Manager of Digital Strategy Department at SMBC, voiced excitement about enhancing Japan-India corridor activities and optimizing global trade through this collaboration.

Expanding Services and Market Reach

Drip Capital currently collaborates with over 9,000 sellers and buyers across more than 100 countries, having financed over $6 billion in trade transactions. The company’s Payable Finance offering allows customers to manage their supplier invoices more effectively by extending payment terms up to 120 days. This unique solution has been instrumental in driving Drip’s growth initiatives.

Addressing the Global Trade Finance Gap

Mukewar emphasized the potential of fintech to revolutionize trade finance, particularly for SMBs involved in import and export operations. By leveraging digital platforms, Drip Capital aims to democratize access to trade finance, offering SMBs faster, more flexible financing options that are unsecured and tailored to their needs.

With the new funding, Drip Capital is poised to accelerate its market expansion and continue developing innovative products that cater to the evolving needs of its customers. The company’s commitment to leveraging AI and digital solutions positions it as a transformative force in the global trade finance sector.