Fintech firm Drip Capital, which offers working capital solutions to exporters, has raised $25 million in its Series B funding round, led by Accel, with participation from existing investors Sequoia India, Wing VC, and Y Combinator. New investors in the round include GC1 Ventures and institutional investor platform Trusted Insight. The company has raised over $45 million in equity till date and $55 million of debt, taking the total funding to $100 million.
Drip Capital is a California and India-based fintech company, focused on solving working capital problems for SME (small and medium enterprises) exporters using technology.
Its working capital offering to exporters is a credit line, which ranges from $100,000 to $2.5 million, depending on the exporter’s size and requirement. The financing is unsecured and offered without any collateral. Exporters can apply to Drip by completing a 10-minute online application, requiring a small amount of paperwork. Drip uses electronic data and an automated risk assessment platform.
Pushkar Mukewar, co-founder and co-CEO at Drip Capital, told FE over a phone conversation that the funds raised will be used for the geographic expansion of the firm as well as to invest in team and technology.
“We started operating in India in 2016. For the first two years, we developed the model in India and then we decided to take it to markets outside India. We launched in Mexico and the UAE earlier this year. As part of this fund raise, not only will we be looking to expand further in Mexico and the UAE, we would also be looking at launching in other international markets, mostly in Southeast Asia. The second area would be investing in team and technology. We are a 120-member team today. We will be scaling up operations…” Mukewar said.
According to the firm, the trade finance gap currently stands at $1.5 trillion globally — the majority of which is among small business exporters in emerging markets.
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