PALO ALTO, Calif.--(BUSINESS WIRE)--Drip Capital, Inc., a leading cross-border digital trade finance platform, is thrilled to announce that its monthly originations have crossed $150 million in March. It is the highest originations by the company in a single month since its inception in 2016.
The global fintech company provides working capital solutions to small and medium-sized businesses (SMBs) in the U.S. and emerging markets like India and Mexico.
The global trade finance gap is estimated to be $3 trillion. The international trade community is witnessing one of its biggest challenges: high shipping costs, uneven recovery of world economies from the COVID-19 pandemic, and geopolitical tension leading to the global supply chain crisis. This has further stressed the cash-crunched SMBs, contributing to over 50% of international trade.
“There is a growing demand for working capital among small businesses due to the ongoing supply chain crisis. Our robust underwriting model has helped us navigate the risks of cross-border transactions, providing timely credit to these businesses,” Pushkar Mukewar, Co-Founder and CEO of Drip Capital, said while adding that “Drip’s clientele have appreciated its online and offline experience, giving them the confidence to expand their business. We will continue to capitalize on this opportunity and finance $10 billion worth of trade in the next 3-4 years.”
The company leverages its proprietary machine learning-based risk assessment model and cloud technology to finance cross-border transactions, allowing SMBs to access working capital and invest in growth. The company has funded more than $2.6 billion worth of global trade. Since its inception, Drip Capital has worked with approximately 5,000 buyers and suppliers who collectively trade in 105 countries.
The company launched its buyer payable finance solutions for U.S. small businesses during the early days of the COVID-19 pandemic in 2020. The firm’s U.S. business has grown four times year on year, and it added approximately $20 million to Drip’s overall originations in March.
Speaking about the buyer finance program, Karl Boog, Head of the U.S. business at Drip Capital said, “Our primary focus has been to solve existing and new problems the trade finance industry faces through technological-enabled solutions. The pandemic was a catalyst for an already constrained supply chain situation in the U.S. It made us focus on solving the working capital requirements for the importers in the U.S. Furthermore, as demand from retail customers grew during 2020, many SMEs needed working capital to service this spike, further underscoring the need for alternative financing solutions like Drip Capital provides.”
Drip recently raised $175 million in fresh capital to unlock its next growth phase. The company aims to use the new funding to scale its business over the next few months. It will invest in products and technology and accelerate go-to-market in new geographies like South Asia and Latin America.
About Drip Capital
Drip Capital is a fintech company that is transforming global trade finance. It offers digitized trade financing solutions in markets like the U.S., India, and Mexico by providing SMB access to collateral-free working capital.
Drip is backed by investors like TI Platform, Irongrey, Accel Partners, Sequoia Capital, Wing VC, and Y Combinator. Drip was honored as a CB Insights Top 250 Global Fintech Company in 2020, and it was a part of Y-com’s Top Companies 2022 List.
For further information on Drip Capital, please visit www.dripcapital.com.
