MUMBAI :
Drip Capital Inc., a digital cross-border commerce finance platform for small and medium companies (SMBs), on Thursday mentioned it has raised $175 million in recent capital to energy its subsequent part of development. Funds raised embody a $40 million Sequence C fairness funding and $135 million in warehouse debt services. So far Drip Capital has raised about $525 million in fairness and debt funding.
San Francisco-based TI Platform led the Sequence C funding spherical alongside participation from new and current traders, together with Accel, Sequoia, Wing VC, Irongrey, and GC1 Holdings. The brand new capital additionally features a $100 million warehouse credit score facility with Barclays Funding Financial institution and a $35 million enhance within the current facility with East West Financial institution (EWB).
Based in 2016, Drip Capital leverages machine studying and cloud expertise to finance cross-border transactions, permitting SMBs to liberate working capital and put money into development. Drip Capital gives digitized commerce financing options in markets such because the US, India, and Mexico by offering SMB shoppers entry to working capital and at the moment works with over 3,500 sellers and consumers throughout 80 international locations. So far, the corporate has financed greater than $2 billion price of world commerce transactions spanning greater than 80 international locations. It serves SMBs throughout India, Mexico, and the US, offering entry to collateral-free credit score.
“The covid-19 pandemic has put extreme stress on money flows of exporters and importers alike. This pressure is being felt most by SMBs who’ve by no means had easy accessibility to capital,” mentioned Pushkar Mukewar, chief government officer and co-founder of Drip Capital. “We’re excited to welcome TI Platform to assist additional our mission to make world commerce straightforward and accessible to SMBs the world over. As well as, the strategic partnerships with main banks reminiscent of Barclays and EWB are additionally a major milestone for us. It’s a robust testomony to the standard of our property and the flexibility to scale our buyer base quickly.”
Drip Capital will use the brand new funding to scale its enterprise over the following 18 months. It should put money into merchandise and expertise and speed up go-to-market in current and new geographies reminiscent of South Asia and Latin America.
The corporate additionally plans to launch a brand new commerce facilitation platform designed to alleviate the ache factors of small companies, whereas collaborating with contributors throughout the worth chain, together with transport strains, fee processors, and insurance coverage suppliers.
“World Commerce Finance is predicted to be a $10 trillion market by 2026. Drip is comfortably established because the market chief on this area, offering SMEs with very important entry to financing. Based mostly on robust unit economics, highly effective tech-driven underwriting, and development trajectory, TI Platform considers it as candidate for breakaway upside,” mentioned Alex Bangash, Managing Associate of TI Platform.
Supply: Live Mint