Drip Capital raises $ 175 million in debt and equity to expand operations in South Asia and Latin America
Drip Capital, a digital cross-border commerce fintech start-up for SMEs, announced it has secured $ 175 million in debt and equity. The new capital injection consists of $ 40 million in Series C investment and $ 135 million in warehouse debt. The company has raised $ 525 million so far, including this fundraiser.
The Series C investment cycle was anchored by the San Francisco-based IT platform, with participation from new and existing investors including Accel, Irongrey, Sequoia, Wing VC and GC1 Holdings. The new financing also includes a $ 100 million warehouse credit facility with London-based Barclays Investment Bank (Barclays) and a $ 35 million (originally $ 40 million) increase to the existing facility. with East West Bank (EWB).
Drip Capital plans to use the new funds to expand its operations over the next 18 months. It will invest in technology and products, and accelerate time to market in existing and new regions such as South Asia and Latin America. The company also intends to introduce a new trade facilitation platform that will work with participants within the value chain, such as shipping companies, payment processors and insurance providers, to to minimize the problems of small businesses.
Commenting on the fundraiser, Pushkar Mukewar, CEO and co-founder of Drip Capital said: âThe Covid-19 pandemic has put great pressure on the cash flows of exporters and importers. This tension is felt above all by SMEs which have never had easy access to capital. We are delighted to welcome TI Platform to help us continue our mission of making global commerce easy and accessible to SMEs around the world. In addition, strategic partnerships with leading banks like Barclays and EWB are also a milestone for us. This is a strong testimony to the quality of our assets and our ability to rapidly develop our clientele. “
San Francisco and Mumbai-based fintech startup Drip Capital, founded in 2016 by Pushkar Mukewar and Neil Kothari, seeks to close the global $ 3 trillion trade finance gap. The startup uses machine learning and cloud computing to fund cross-border transactions, allowing SMEs to free up working capital and focus on growth.
So far, the company works with more than 3.5,000 vendors and has supported more than $ 2 billion in global business transactions in more than 80 countries. It provides unsecured loans to small and medium-sized businesses in India, Mexico, and the United States.
Drip Capital competes with companies such as CredAvenue, ePayLater, FlexiLoans, Indifi and Lendingkart. Digital lending is one of the fastest growing industries in India’s booming fintech space. According to Statista, India’s digital lending industry has grown from $ 9 billion in 2012 to $ 150 billion in 2020 and will reach around $ 350 billion by 2023.