Drip Secures $113 Million to Grow Digital Trade Finance Platform
Drip Capital has secured $113 million in new funding to develop new products and to accelerate the growth of its digital platform for trade finance.
The company has quadrupled its revenue and doubled its customer base over the past two years, despite rising interest rates that challenged the global trade sector during that time, Drip Capital Co-founder and CEO Pushkar Mukewar said in a Thursday (Sept. 5) press release.
“Despite these challenges, Drip has emerged as the preferred trade finance platform for SMBs [small- t0 medium-sized businesses] in the U.S. and India,” Mukewar said. “We’ve achieved cash profitability and expanded our business during this period.”
With new investors joining the company’s existing investors and debt partners, Drip Capital is “ready to drive our next phase of growth,” Mukewar added.
Drip Capital currently collaborates with more than 9,000 sellers and buyers in more than 100 countries, helping SMBs manage their cash flows and working capital, according to the release. In the past eight years, the company has financed over $6 billion in trade transactions.
The company uses artificial intelligence (AI) to help assess credit risk, streamline operations and enhance customer experiences, the release said. It will continue to invest in that technology.
Drip has also expanded the range of services it offers SMBs by integrating foreign exchange and risk analytics solutions with its core trade financing products, per the release.
The company’s investors include GMO Payment Gateway and Sumitomo Mitsui Banking Corp. (SMBC), according to the release.
“Drip’s innovative and comprehensive solutions in digital trade finance are transforming how SMBs engage in trade,” GMO Payment Gateway Executive Vice President Ryu Muramatsu said in the release.
Keiji Matsunaga, general manager of digital strategy department at SMBC, said in the release: “We are excited to contribute to the growth of society and market, by encouraging Japan-India corridor activities via this collaboration.”
Drip seized upon the increased digitization of trade-related data records by using technology and data to calibrate and price the risk involved in brokering cross-border transactions, Mukewar told PYMNTS CEO Karen Webster in an interview posted in 2021.
“Another very important aspect of our product is looking not just at traditional financial metrics, but also leveraging electronic trade data to be able to really assess the risk of every transaction which we finance,” Mukewar said.
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