PE Fund Investments
Cross border SME trade financier Drip Capital raises $113-M in equity, debt
Palo Alto, California (US)- and Mumbai-based cross-border trade finance fintech firm Drip Capital has attracted USD 113 million in a new funding round, including USD 23 million in equity from Japan’s GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC). The remaining USD 90 million was raised through debt led by the International Finance Corporation (IFC) and East West Bank.The new funding will be used to expand Drip’s trade finance solutions and venture into trade facilitation. The equity portion will mainly support product expansion, capacity building, and enhancing Drip Capital's tech stack, while debt funding will be used to scale up disbursals.Drip Capital focuses on addressing the working capital needs of SMEs (small and medium enterprises) engaged in cross-border trade in agro commodities, food processing, textiles, industrial goods, chemical manufacturing, and solar manufacturing. These businesses typically access credit lines of between USD 50,000 to USD 3 million from Drip.Drip Capital offers two major product offerings: receivables discounting, which allows SMEs to unlock working capital tied up in unpaid invoices, and supply chain finance. The firm claims to serve SMEs across over 100 countries, facilitating trade for more than 10,000 sellers and buyers worldwide.
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