Drip Capital, a digitalized cross-border trade finance platform for small and medium businesses (SMBs), recently announced raising up of $175million fresh capital for driving out the forthcoming evolution phase. As per the firm, the funds raised comprised a $40 million Series C investment, $135 million warehouse debt facilities.
As per the firm’s resources, till date, with the accumulated fundraised, it had capitalized, raised around $525 million in the debt-equity funding.
San Francisco backed TI podium powered out the Series C Investment round with the participation of latest as well as existing investors comprising of Accel, Sequoia, Wing VC, Irongrey, GC1 Holdings.
As per the firm’s reports, the latest capital also embraces of a $100 million warehouse credit capacity with the Barclays Investment Bank (Barclays), as well as $35 million upsurge in the current capacity (initially $40M) comprising of East West Bank (EWB).
Statement from Pushkar Mukewar, CEO, Co-founder of Drip Capital
Pushkar Mukewar, CEO, Co-founder of Drip Capital, announced that, “The COVID-19 pandemic has put severe pressure on cash flows of exporters and importers alike. This strain is being felt most by SMBs who have never had easy access to capital.” He also added that, “We are excited to welcome TI Platform and Barclays to help further our mission to make global trade easy and accessible to SMBs across the world.”
Statement from Alex Bangash, Managing Partner of TI Platform
Alex Bangash, Managing Partner, TI Platform, commented that, “We are proud to strengthen our partnership with Drip Capital and excited to support their vision for building the preeminent global trade platform.”
He also added that, “Global Trade Finance is expected to be a US $10 trillion market by 2026. Drip is comfortably established as the market leader in this space, providing SMEs with vital access to financing. Based on strong unit economics, powerful tech-driven underwriting, and growth trajectory, TI Platform considers it as a good candidate for breakaway upside.”
Statement from Karl Boog, Head of Capital Markets at Drip Capital
Karl Boog, Head of Capital Markets at Drip Capital, commented regarding the Warehouse Credit Capacity, by stating that, “Institutional alliances are an important pillar of our strategy. These strategic partnerships with leading banks like Barclays and EWB are a significant milestone for us. It is a strong testament to the quality of our assets and ability to grow our customer base rapidly.”
The firm commenced its operations in 2016, as it focused to solve out a $3 trillion global trade finance gap accumulated by it. As per the firm’s reports, the firm leverages machine learning, cloud technology to finance cross-border transactions, thereby empowering SMBs to free up working capital, invest in growth.
As per the firm’s resources, till date, the firm has financed in excess of $2 billion global trade transactions worth spanning 80+ nations. It serves SMBs across India, Mexico, the US, empowering access to collateral-free credit.
As per the firm’s comments, it will be utilizing out the latest funding to elevate its business over the forthcoming 18 months. It will invest in merchandizes, technology, swifter out the go-to-market in prevailing, latest geographies like South Asia, Latin America. As per the firm’s reports, they are also planning to pursue, commence out a latest trade enabling platform intended to alleviate the pain points of small businesses while joining the forces with participants across the value chain, counting shipping lines, payment processors, insurance providers.