US-based trade finance platform Drip Capital has successfully raised $113 million, approximately Rs 949 crore, through a strategic combination of debt and equity financing. This funding round was announced on Thursday and includes significant contributions from both international and Japanese investors.
The funding comprises a $23 million equity investment from Japanese institutional investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC). Additionally, Drip Capital has secured $90 million in debt financing, led by the International Finance Corporation (IFC) and East West Bank.
Drip Capital Co-Founder and CEO Pushkar Mukewar commented, “We have raised $113 million which is a mix of debt and equity investment. Japanese institutional investors GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC) have invested $23 million in equity while $90 million in debt financing has been led by the International Finance Corporation (IFC) and East West Bank.”
The company, which funds trade worth $1.8-2 billion annually, sees a significant portion of its business originating from India, with 50-60% of its transactions linked to the Indian market. “We fund merchants when the shipments leave Indian shores,” Mukewar added.
The new funding will support Drip Capital’s market expansion and the development of new products designed to meet customer needs. “We have quadrupled our revenue in the last two years and expect to double it in the next two years. We have 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,” Mukewar stated.
To date, Drip Capital has raised approximately $640 million in a mix of equity and debt funding. Its equity investors include Accel, Wing, Transpose Platform, Peak XV Partners (Sequoia India), Sumitomo Mitsui Banking Corporation (SMBC), GMO Payment Gateway, and Y-Combinator. The company’s debt partners include IFC, Barclays, and East West Bank.