[Funding News] Drip Capital Raises $113 Mn Funding Round

Cross-border commerce finance fintech Drip Capital has secured $113 million in new financing, which includes $23 million in equity from Japanese investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC).

The International Finance Corporation (IFC) and East West Bank headed the debt financing that raised the remaining $90 million.

The equity portion will be primarily used to support product expansion, capacity development, and the enhancement of Drip Capital's tech stack. The debt funding will be used to increase disbursals, according to a statement.

Drip Capital is a fintech company that specializes in providing working capital solutions to small and medium-sized enterprises (SMEs) that are involved in cross-border trade. Its primary sectors include agro commodities, food processing, textiles, industrial products, chemical manufacturing, and solar manufacturing.

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These businesses typically generate revenues between $1 million and $50 million annually and obtain credit lines from Drip that range from $50,000 to $3 million, which account for 20-25% of their working capital requirements.

Drip Capital provides two primary product offerings: receivables discounting, which enables small and medium-sized enterprises (SMEs) to release working capital that is currently locked up in unpaid invoices, and supply chain financing, which enables buyers to receive extended credit through Drip Capital's platform, thereby facilitating payments to suppliers.

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About Drip Capital

Founded in 2015 by Pushkar Mukewar and Neil Kothari, Drip specializes in efficient working capital solutions, offering both payable and receivable finance solutions.

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