Proceeds obtained include a $40 million Series C investment and $135 million in warehouse debt facilities, according to a release. To date, with this capital injection, Drip Capital has secured around $525 million in equity and debt funding.
San Francisco-headquartered TI Platform has reportedly led the Series C investment round along with contributions from new and existing investors, such as Accel, Sequoia, Wing VC, Irongrey, and GC1 Holdings.
The new capital also “includes a $100 million warehouse credit facility with Barclays Investment Bank and a $35 million increase in the existing facility (initially $40M) with East West Bank” the announcement revealed.
Established in 2016, Drip Capital aims to “solve the $3 trillion global trade finance gap,” the update explained. The firm leverages machine learning and Cloud tech to finance cross-border transfers, “allowing SMBs to free up working capital and invest in growth.”
To date, the firm has financed over $2 billion in international trade transactions covering over 80 different countries. It serves SMBs “across India, Mexico, and the US, providing access to collateral-free credit,” the update revealed.
Pushkar Mukewar, CEO and Co-founder of Drip Capital, stated:
“The COVID-19 pandemic has put severe pressure on cash flows of exporters and importers alike. This strain is being felt most by SMBs who have never had easy access to capital. We are excited to welcome TI Platform and Barclays to help further our mission to make global trade easy and accessible to SMBs across the world.”
Alex Bangash, Managing Partner of TI Platform, remarked:
“We are proud to strengthen our partnership with Drip Capital and excited to support their vision for building the preeminent global trade platform. Global Trade Finance is expected to be a US $10 trillion market by 2026. Drip is comfortably established as the market leader in this space, providing SMEs with vital access to financing. Based on strong unit economics, powerful tech-driven underwriting, and growth trajectory, TI Platform considers it as a good candidate for breakaway upside.”
Karl Boog, Head of Capital Markets at Drip Capital added:
“Institutional alliances are an important pillar of our strategy. These strategic partnerships with leading banks like Barclays and EWB are a significant milestone for us. It is a strong testament to the quality of our assets and ability to grow our customer base rapidly.”
Drip Capital will use the capital acquired to further scale its business operations during the next 18 months. It will invest in products and tech and “accelerate go-to-market in existing and new geographies like South Asia and Latin America.”
The announcement further noted that the firm intends to launch a trade facilitation platform designed to “alleviate the pain points of small businesses while collaborating with participants across the value chain, including shipping lines, payment processors, and insurance providers.”