Fintech company Drip Capital said it has so far raised $20 million in funding through several tranches in two rounds. The California-based startup raised $15 million from Accel Partners, Sequoia India, and Wing VC in a Series A round, with participation from existing investors Y-Combinator and others, who had invested $5 million in the seed round.
Additionally, the company has also raised an undisclosed amount of debt capital from Silicon Valley Bank and others.
Commenting on the development, Mohit Bhatnagar, managing director, Sequoia Capital India Advisors, said, “With a partner like Drip Capital, emerging market exporters now never need to say ‘no’ to a new order due to working capital constraints. This offers a huge boost to small-and-medium businesses, which play such a significant role in India’s trade network.”
Jeff Schneble, a partner at Wing VC, further added, “With a cross-border presence and expertise in data science and credit, we believe Drip’s team is well-positioned to capitalise on the global trade finance opportunity.”
Founded in 2014, Drip Capital started with India with as the first exporter market. It works towards providing working capital finance to emerging small-and-medium-sized enterprises(SMEs) that are indulging in cross-border trade.
Drip Capital’s aim is to create a playing field for existing SMEs and increase the global trade. The fintech company employs alternative data and technology to underwire and finance cross-border transactions. The company claims to have already funded over $100M of trade flows across industries in the last 18 months.