Drip Capital Raises $25 Million in Series B Funding to Accelerate Global Trade
The round was led by Accel along with existing and new investors
by Prashant Kapadia/NHN
-
Drip Capital raised $25 million in Series B Funding. $45 million of total equity raised till date along with $55 million in debt.
-
Drip Capital has financed over $500 million of cross-border trade originating from India; Aims to cross $1billion by FY 2020, becoming the de-facto trade finance provider for Indian exporters.
-
With the new round of funding, Drip plans to expand into new geographies starting with Mexico and UAE, and develop new product offerings for exporters.
Mumbai, July, 2019: Palo Alto and Mumbai based fintech firm Drip Capital has raised $25 million in Series B funding led by Accel with participation from existing investors Sequoia India, Wing VC, and Y Combinator. New investors in this round include GC1 Ventures and institutional investor platform Trusted Insight. The company has raised over $45 million of equity to date and $55 million of debt, taking the total funding to $100 million.
Drip Capital uses technology to accelerate global trade and empower small companies and entrepreneurs in emerging markets. At the click of a button, Drip’s solution provides small business exporters the working capital they need to grow their business. The trade finance gap currently stands at $1.5 trillion globally – the majority of which is amongst small business exporters in emerging markets. In other words, that is, $1.5 trillion of trade that does not happen due to a lack of access to working capital. This is the problem Drip set out to solve, financing its first invoice in India in 2016.
“Trade finance is an age-old paper-based industry dominated by banks that primarily focus on large, established corporate customers. Hence, small businesses, despite accounting for 50% of merchandise exports from India, remain largely neglected. Our mission is to level the playing field for these small business exporters, not just in India but across emerging markets around the world.” says Pushkar Mukewar, Co-Founder and Co-CEO, Drip Capital.
Drip is rebuilding the core parts of international trade finance infrastructure from the ground up. The company uses electronic data and technology to rapidly underwrite and finance cross-border B2B transactions.
“With an automated system, Drip provides a seamless customer experience and can finance a shipment with the click of a button. On the backend, Drip integrates with multiple electronic data sources and has built proprietary algorithms to underwrite the risk of every shipment”, adds Neil Kothari, Co-Founder and Co-CEO, Drip Capital.
A Mumbai-based exporter of steel products, and a Drip Capital customer since 2017, Siddharth Gupta, Director, Isinox Limited, says, “Due to the limited bank facilities available to us as a mid-sized exporter, our business started stagnating. With its collateral-free finance solution and an online approach to trade finance, Drip gave us the flexibility to service more orders which helped increase our revenue considerably.”
Since its launch in India, Drip’s business model has showcased tremendous potential with a 10x growth rate in the last two years. The company has already funded more than $500 million of trade across 400+ exporters. “By FY 2020, Drip aims to fund $1 billion of trade originating from India. With the new round of funding and a proven model, the company is planning to expand its global footprint, launching in the United Arab Emirates and Mexico in 2019,” Mukewar adds.
Elaborating on the fundraise, Abhinav Chaturvedi from Accel says, “We have been associated with Drip since its inception and have participated in all their funding rounds till date. It has been inspiring to see the company’s progress in the last two years. We are excited to support them in their next phase of growth as they take their business model global.”
Small businesses are a key driver for economic growth and employment around the globe. As Drip expands to new geographies, the company has an opportunity to accelerate development across these markets. With new funding and a strong global team in place, Drip Capital is ready to level the playing field for exporters of every size and in every country.
About Drip Capital: Drip Capital is a California and India based fintech company, focused on solving the working capital problem for SME exporters using technology. The company was founded by Pushkar Mukewar and Neil Kothari, both roommates at Wharton. The 120-member team now comprises of engineers, data scientists and trade finance veterans across offices in Palo Alto, Mexico City, Dubai and three offices in India – Mumbai, Delhi and Bengaluru. Drip has strategic partnerships with a number of key export promotion organizations, including FIEO (Federation of Indian Export Organizations) and EEPC (Engineering Export Promotion Council).
Drip’s working capital offering to exporters is a credit line, which ranges from USD 100 thousand to USD 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 minimal paperwork. Drip uses electronic data and an automated risk assessment platform, thereby ensuring a quick turnaround of 48 to 72 hours.
https://www.dripcapital.com/
Previous Article