Drip Capital, a leading digital platform for trade finance, has recently secured $113 million in latest funding. This comprises $23 million in equity from Japanese institutional investors, GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC), and $90 million in debt financing, powered by the International Finance Corporation (IFC) and East West Bank.
According to Industry sources, Drip has witnessed remarkable expansion, quadrupling its revenue and doubling its client base in the past two years. The firm has expanded its services for SMBs by integrating forex and risk analytics solutions with its core trade financing products. The latest funding will expedite market expansion and aid in the development of the latest products tailored to client requirements.
“In 2022 and 2023, the global trade sector faced significant challenges, including rising interest rates that squeezed margins and restricted capital access for SMBs. Despite these challenges, Drip has emerged as the preferred trade finance platform for SMBs in the US and India,” stated Pushkar Mukewar, Co-founder and CEO of Drip Capital. “We’ve achieved cash profitability and expanded our business during this period. We are excited to welcome our new investors, and alongside our existing investors and debt partners, are ready to drive our next phase of growth.”
On the debt capital raise, Drip Capital’s Chief Business Officer, Karl Boog, stated: “Having financed over $6 billion in trade in the past eight years, we have successfully scaled our capital providers. We are thrilled to welcome additional capital from East West Bank and the IFC, the world’s largest development finance institution.”
Karl Boog continued: “For our North American business, we have financed nearly $1 billion for US and Canadian SMBs over the past few years. Our unique Payable Finance offering allows our customers to pay their suppliers’ invoices and extend payment terms up to 120 days.”
“We are proud to have supported Drip from its inception, through both equity investment and debt financing. We greatly admire the remarkable growth they have achieved so far. It is a great honor for us to participate with an additional equity investment and advance toward a strategic partnership. Drip’s innovative and comprehensive solutions in digital trade finance are transforming how SMBs engage in trade. We believe Drip’s technology and proprietary underwriting are uniquely positioned to address the challenges in this space. We are excited to continue supporting their journey as they drive forward with ongoing growth and expansion,” stated Ryu Muramatsu, Executive Vice President, GMO Payment Gateway.
“We are excited to contribute to the growth of society and market, by encouraging Japan–India corridor activities via this collaboration. We look forward to combining the expertise of SMBC Group with Drip Capital’s technologies, to optimize global trade and enable opportunities for small and medium-sized businesses,” commented Keiji Matsunaga, General Manager of the Digital Strategy Department, Sumitomo Mitsui Banking Corporation (SMBC).
Industry sources further confirmed that Drip has been a firebrand in the fintech domain, leveraging advanced AI technologies to boost efficient credit risk assessment, streamline operations, and enhance customer experiences. By continuing to invest in AI, Drip Capital aims to be at the forefront of implementing AI for trade finance.
