SME-focused trade finance provider Drip Capital has raised US$113mn in a new funding round, including from the International Finance Corporation (IFC) and SMBC.

The funding includes US$23mn in equity investments from SMBC’s Asia Rising Fund, launched last year, and Japanese payments company GMO Payment Gateway.

Drip Capital, which operates mainly in India and the US, also closed US$90mn in debt which the company said was led by the IFC and Californian lender East West Bank, an existing partner.

Pushkar Mukewar, Drip Capital’s co-founder and chief executive, says while SMEs in many countries have struggled to access capital over the last two years, “we’ve 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.”

The company, which says it has so far provided US$6bn in trade financing in India and US$1bn in the US, has previously secured investments from venture capital firms Accel and Sequioa.

In 2021 it raised US$175mn in fresh funding, predominantly through a US$100mn warehouse facility provided by Barclays and debt extended by East West Bank.

General manager of SMBC’s digital strategy department Keiji Matsunaga says: “We are excited to contribute to the growth of society and market, by encouraging Japan–India corridor activities via this collaboration.”

“We look forward to combining the expertise of SMBC Group with Drip Capital’s technologies, to optimise global trade and enable opportunities for small and medium-sized businesses,” he adds.

The post Drip Capital secures new investors in latest funding round appeared first on Global Trade Review (GTR).



Source link