Drip Capital Nets $50 Mn Debt To Offer Working Capital To SMBs

Drip Capital Raises $113 Mn In A Mix Of Debt & Equity

SUMMARY

The deal will also have an additional $25 Mn accordion feature, which means that Drip Capital will be able to extend its credit line without negotiating a new agreement

The fresh proceeds will be utilised to scale up the startup’s trade finance platform and its volume

Founded in 2015, Drip Capital offers trade financing solutions to small and medium business (SMB) clients in India, the US and Mexico

Trade financing startup Drip Capital has raised $50 Mn (INR 441.5 Cr) in a debt funding round led by Canada-based Toronto-Dominion Bank.

The deal will also have an additional $25 Mn accordion feature. This means that Drip Capital will be able to extend its credit line by an additional $25 Mn without negotiating a new agreement.

In a statement, Drip Capital said that the debt facility will support the startup’s buyer finance programme across North America and reinforce its position in the cross-border SMB financing segment globally.

Speaking with Inc42, Drip Capital cofounder and CEO Pushkar Mukewar said that the fresh proceeds will be utilised to scale up the startup’s trade finance platform and its volume. “I think India is an important market for us, as almost 60% of our volume comes from the country and we are looking to continue scaling that up with this funding,” he added.

Founded in 2015 by Mukewar and Neil Kothari, Drip Capital offers trade financing solutions to small and medium business (SMB) clients in India, the US and Mexico. Simply put, the company provides working capital to small businesses involved in international trade.

Drip Capital predominantly focuses on cross-border engagements, mainly exports and imports, across sectors such as agro-commodities, processed food, textiles, industrial goods, engineering goods and such.

Mukewar claimed that the startup has so far worked with 11,000 companies on its platform and employs about 300 employees. He mentioned that while most of the startup’s back-end operations (including sales and collection) are based out of India, Drip Capital’s strategic team is based in the US.

The latest fundraise comes a year after Drip Capital bagged $113 Mn in a mix of debt and equity in September 2024. In total, the trade financing platform has so far raised more than $500 Mn in debt from the likes of marquee names such as Barclays, International Finance Corporation (IFC), East West Bank, among others.

On the financial front, Mukewar claimed that the startup has been profitable for nearly 18 months.