[Funding alert] Drip Capital raises $175 million
Drip Capital will use the fresh capital to scale its business with investments in go-to-market initiatives and product development.
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, a digital cross-border trade finance platform for small and medium businesses (SMBs), on Thursday, said it has raised $175 million in through a combination of debt and equity.
The funds raised include $40 million in equity and $135 million in warehouse debt facilities. With this fundraise, Drip Capital has raised about $525 million in equity and debt funding so far.
San Francisco-based TI Platform led the Series C investment round alongside participation from new and existing investors including Accel, Sequoia, Wing VC, Irongrey, and GC1 Holdings. The new capital also includes a $100 million warehouse credit facility with Barclays Investment Bank (Barclays) and a $35 million increase in the existing facility (initially $40 million) with East West Bank (EWB).
Drip Capital will use the new funding to scale its business over the next 18 months. It will invest in products and technology and accelerate go-to-market in existing and new geographies like South Asia and Latin America. The startup currently serves SMBs in India, Mexico, and the US, according to a statement.
Pushkar Mukewar, CEO and Co-founder of Drip Capital
Founded in 2016, Drip Capital aims to solve the $3 trillion global trade finance gap. The company leverages machine learning and cloud technology to finance cross-border transactions, allowing SMBs to free up working capital and invest in growth. The startup claims to have so far financed over $2 billion worth of global trade transactions spanning 80+ countries.
"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,” said Pushkar Mukewar, CEO and Co-founder of Drip Capital.
The company also plans to launch a new trade facilitation platform designed to alleviate the pain points of small businesses while collaborating with participants across the value chain, including shipping lines, payment processors, and insurance providers.
Alex Bangash Managing Partner of TI Platform said, “Global trade finance is expected to be a $10 trillion market by 2026. Drip is comfortably established as the market leader in this space, providing SMEs with vital access to financing.”