Drip Capital, a digital platform specialising in trade finance, has raised $113m in new funding, aiming to expedite the company’s growth.
The investment comprises $23m in equity from Japanese institutional investors, including GMO Payment Gateway and Sumitomo Mitsui Banking (SMBC).
It also encompasses $90m debt financing, which is led by the International Finance Corporation (IFC) and East West Bank.
The newly secured funds are expected to accelerate Drip Capital’s market expansion and facilitate the development of new, customer-focused products.
GMO Payment Gateway executive vice president Ryu Muramatsu said: “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 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.”
Drip Capital leverages international trade data to offer innovative and rapid financing solutions to help global small and medium-sized enterprises (SMEs) scale their businesses.
Drip Capital utilises advanced artificial intelligence (AI) technologies to enhance credit risk assessment, streamline operations, and improve customer experiences.
The firm is focused on the $5 trillion global SME cross-border trade industry. It is said to collaborate with more than 9,000 sellers and buyers across 100 countries.
Drip Capital claims to have financed more than $6bn in trade transactions. The digital platform allows SMBs to efficiently manage their cash flows and working capital to drive sustainable business growth.
According to Drip Capital, it has experienced significant growth in recent years, with its revenue quadrupling and its customer base doubling within the last two years.
The company has broadened its offerings for small and medium-sized businesses (SMBs) by integrating foreign exchange and risk analytics solutions with its core trade financing products.
Drip Capital plans to continue investing in AI to maintain its position at the cutting edge of trade finance innovation.
Drip Capital co-founder and CEO Pushkar Mukewar said: “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.
