Drip Capital, a global fintech that provides cross-border trade finance, announced on Thursday it has completed a US$40 million committed warehouse credit facility with East-West Bancorp (EWB) for the expansion of Drip’s trade finance solutions to small and medium-sized businesses (SMBs).
Karl Boog, Head of Capital Markets at Drip Capital, stated that the asset-based credit facility provides the company with financing capacity to help power th next phase in its growth.
“Despite the pandemic and resulting dislocation in capital markets, we have been extremely impressed with the execution and solutions-oriented approach by the East West Bank team.”
Pushkar Mukewar, Co-Founder and CEO at Drip Capital, further commented:
“The partnership with East West Bank represents a significant milestone for our Company. It will further accelerate our ability to provide fast and seamless financing to global exporters and importers. We are excited to work with Mark Parsa and the EastWest team as we scale up our operations to service many more customers.”
Founded in 2015, Drip Capital is on a mission to solve the “work capital problem” for SME exporter using technology.
“Trade finance is an age-old paper-based industry dominated by banks that focus on large, established corporate customers. Today, however, small businesses account for 40% of international trade, but still remain neglected by banks. Drip Capital is using technology to re-build core parts of the international trade finance infrastructure and make the underwriting and financing of international B2B transactions seamless for small businesses. Our mission is to level the playing field for small businesses located in emerging markets and to finance their international trade at the click of a button.”
Drip recently surpassed US$1 billion of cross-border trade through its online platform. The company has also reported nearly US$200 million through venture capital and debt since 2016. On the equity front, the company has raised over US$ 45 million through investors such as Accel Partners, Sequoia Capital, Wing VC, and Y Combinator.