Drip Capital, a digital platform for trade finance, has secured $113 million in new funding. This includes $23 million in equity from Japanese institutional investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC) and $90 million in debt financing led by the International Finance Corporation (IFC) and East West Bank.
The new funding will expedite market expansion and support the development of new products tailored to customer needs.
“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,” said 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.”
Drip has in the past two years quadrupled its revenue and doubled its customer base. The company has expanded its services for Small and Medium Businesses (SMBs) by integrating forex and risk analytics solutions with its core trade financing products.
Drip has been utilizing advanced AI technologies to enable 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.
Ryu Muramatsu, Executive Vice President of GMO Payment Gateway, said,” We are proud to have supported Drip from its inception through both equity investment and debt financing. We greatly admire their remarkable growth so far.
It is a great honour for us to participate with an additional equity investment and advance towards 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 continue growing and expanding.”
Keiji Matsunaga, General Manager of the Digital Strategy Department at Sumitomo Mitsui Banking Corporation (SMBC), said,” We are excited to contribute to the growth of society and the 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.”