Drip Capital, a digital cross-border trade finance platform for small and medium businesses (SMBs), announced that it has raised US$175 million to power its next phase of growth.
Funds raised include a US$40 million Series C investment and US$135 million in warehouse debt facilities.
To date, with this fundraise, Drip Capital has raised about US$525 million in equity and debt funding.
San Francisco-based TI Platform led the Series C investment round alongside participation from new and existing investors, including Accel, Sequoia, Wing VC, Irongrey, and GC1 Holdings.
The new capital also includes a US$100 million warehouse credit facility with Barclays Investment Bank (Barclays) and a US$35 million increase in the existing facility (initially US$40 million) with East West Bank (EWB).
Drip Capital will use the new funding to scale its business over the next 18 months. It will invest in products and technology and accelerate go-to-market in existing and new geographies like South Asia and Latin America.
The company also plans to launch a new 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.
Founded in 2016, Drip Capital leverages machine learning and cloud technology to finance cross-border transactions, allowing SMBs to free up working capital and invest in growth.
To date, the company reportedly has financed more than US$2 billion worth of global trade transactions spanning 80+ countries. It serves SMBs across India, Mexico, and the US, providing access to collateral-free credit.
“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.”
said Pushkar Mukewar, CEO and Co-founder of Drip Capital.
This article first appeared on Fintech News Switzerland.