Digital trade finance platform Drip Capital has raised USD 113 million in a new funding round, combining USD 23 million in equity and USD 90 million in debt. The equity comes from Japanese institutional investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC). The debt financing is backed by the International Finance Corporation (IFC) and East West Bank. Existing investors also participated in this round.
Focus on SMBs in Key Markets
Drip Capital aims to use these funds to enhance its trade finance solutions and broaden its product offerings for small and medium-sized businesses (SMBs) in critical markets such as India and the United States. With the new capital, the company plans to expand into trade facilitation services like forex and sourcing, helping SMBs better manage their financial needs in global trade.
Overcoming Global Trade Challenges
Co-founder and CEO Pushkar Mukewar acknowledged the global challenges faced by the trade sector in 2022 and 2023, including rising interest rates and restricted capital access for SMBs. Despite these challenges, Drip Capital has remained the preferred platform for trade finance in the US and India. “We are cash profitable and have expanded our business during this period,” Mukewar said, expressing optimism about the next phase of growth alongside new and existing investors.
Drip Capital’s Innovative Solutions
Founded in 2016 by Pushkar Mukewar and Neil Kothari, Drip Capital provides working capital solutions like payable and receivable finance to optimize cash flows for SMBs. The company has integrated AI technologies to streamline operations and improve credit risk assessments.
To date, Drip Capital has worked with over 9,000 sellers and buyers across 100+ countries, financing more than USD 6 billion in trade transactions. The company has raised approximately USD 640 million in total funding from global investors.
