Drip Capital secures $50M credit facility from TD Bank to scale SMB trade finance across North America

• Drip Capital’s total debt funding raised to date exceeds US$500 million, supported by global partners including Barclays, World Bank’s International Finance Corporation (IFC), and East West Bank
• Drip Capital has financed over USD$8 billion in trade transactions for more than 11,000 firms across 100+ countries since inception

Drip Capital, a digital trade finance and B2B e-commerce company, has secured a US$50 million committed credit facility with an additional $25 million accordion feature from Toronto-Dominion Bank (TD Bank), one of the top ten banks in North America.

Pushkar Mukewar, Founder & CEO, Drip Capital

The partnership marks Drip Capital’s first engagement with TD Bank. The facility will support the company’s Buyer Finance programme across North America while reinforcing its leadership in cross-border SMB financing globally. With this round, Drip Capital’s total debt funding raised to date exceeds US$500 million, supported by global financial partners including Barclays, the World Bank’s International Finance Corporation (IFC), and East West Bank. 

India’s small and mid-sized businesses (SMBs) power nearly 40% of the nation’s exports, yet many still face cash flow gaps and limited access to formal credit. Drip Capital bridges this gap by giving exporters instant access to working capital through its non-recourse receivables factoring solution, where they’re paid upfront for their overseas shipments by Drip Capital, which, instead of the exporter, takes on the risk of payments from the overseas buyers. This approach allows SMBs to grow their business confidently without tying up collateral or worrying about buyer defaults.

Since its inception in 2016, Drip Capital has financed over US$8 billion in trade transactions for more than 11,000 firms across 100+ countries, including thousands of Indian exporters in sectors such as agro commodities, textiles, chemicals, and engineering goods. In FY24–25 alone, the company disbursed over US$2 billion, with India continuing to be one of its largest and fastest-growing markets.

“This partnership with TD Bank reinforces global confidence in Drip Capital’s business model and the strength of Indian fintech on the world stage,” said Pushkar Mukewar, Founder and CEO, Drip Capital. “Our mission is simple: to make global trade more accessible for small businesses. Whether in India, or outside, SMBs need reliable financing and trusted trade partners to compete. This facility allows us to extend that support at scale.”

“Every company can benefit from having a collateral-free, flexible credit line to procure goods and services and manage working capital better. Despite our rapid growth, we’ve only scratched the surface. Drip Capital is quietly financing the supply chains behind millions of purchases across the globe,” Mukewar added.

Drip Capital closes $40M Committed Warehouse Credit Facility from East West Bancorp to facilitate trade finance to small businesses

Drip Capital closes $40M Committed Warehouse Credit Facility from East West Bancorp to facilitate trade finance to small businesses

Mumbai - 25th March: Drip Capital, a leading Fintech provider of cross-border trade finance, and East-West Bank (EWB) announce a US$ 40M committed credit facility for the expansion of Drip's trade finance solutions to small and medium-sized businesses (SMBs).

"Drip is growing at a rapid pace and institutional partnerships are a cornerstone of our capital markets strategy. 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," said Pushkar Mukewar, Co-Founder and CEO at Drip Capital.

"We are pleased to provide financial support to a global fintech company like Drip Capital to help them achieve their growth plan," said Kristine H. Pfeilsticker, FVP-Relationship Manager of Structured Finance at East West Bank. "We both have extensive experience in cross-border financing and a shared focus on offering innovative solutions to SMBs."

"This new asset-based credit facility provides Drip with considerable incremental financing capacity to help power the next phase of our company's growth. We are excited to scale our capital markets programs providing unprecedented access to trade finance assets. 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," said Karl Boog, Head of Capital Markets at Drip Capital.

Drip Capital is a market leader in the global trade finance space. The company offers trade financing solutions in the US and developing markets like India and Mexico by giving their clients access to working capital quickly. Drip works with over 1,500 sellers and buyers spread across 80+ countries. The FinTech firm has financed over US$ 1.2B of international trade since its inception in 2016.

In the US, Drip provides buyer financing solutions -- supply chain finance and inventory finance -- to SMB importers, who further cater to the multinationals across the country. The company acts as a strategic financial partner to these SMBs allowing them to effectively manage their cash flows / working capital to accelerate sustainable business growth.

Drip has raised nearly US$ 200M through venture capital and debt since 2016, including over US$ 45M in equity capital through investors such as Accel Partners, Sequoia Capital, Wing VC, and Y Combinator.

East West Bancorp is a publicly owned company with total assets over US$ 50B and is traded on the Nasdaq Global Select Market under the symbol "EWBC." The Company's wholly-owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California and one of the largest minority depository institutions in the United States. The bank provides commercial and consumer banking services that help clients reach further and connect to new opportunities on both sides of the Pacific. East West Bank operates more than 120 locations in key cities in the U.S. and Greater China. The bank's Structured Finance group provides senior secured lending facilities to specialty finance companies and project finance transactions. For more information about East West Bank, please visit www.eastwestbank.com.

About Drip Capital

Drip Capital is a global financial technology company backed by Accel, Sequoia, Wing VC, and Y-Combinator. Drip offers unique and innovative trade financing solutions to solve working capital problems among small and medium-sized businesses in emerging markets like India and Mexico and developed markets like the US. The financing solutions are collateral-free and offered through a completely digital process. To apply for Drip's offering, customers need to complete a quick online application with minimal paperwork. The company uses electronic data and an automated risk assessment platform, thereby ensuring a quick turnaround. Drip Capital was recently honored as a CB Insight's Top 250 Global Fintech Companies in 2020. Read more about the company here: www.dripcapital.com

Fintech Firm Drip Capital Raises $25 Mn from Accel, Sequoia India and others

Accel Partners, Sequoia India and others have pumped US$25 million into the fintech-based trade financier Drip Capital in series B funding.

With this, the Palo Alto-and Mumbai-based company has raised U$45 million in equity and $55 million in debt, taking the total funding to $100 million.

The other investors who joined the latest round of funding include Wing VC and Y Combinator, along with Sequoia which are all existing investors, Drip Capital said in a statement Wednesday.

The current round of funding also has two other new investors--GC1 Ventures and institutional investor platform Trusted Insight, it added.

"The new fund will be used for global expansion over the next 12-18 months. Apart from India, we are already present in Mexico and the UAE and now we are looking to enter Southeast Asia as well," Drip Capital co-founder and co-chief executive Pushkar Mukewar said.

The company will use a part of the fresh capital in technology and expand its sales and marketing team, he said,
adding globally, it employs 120.

Mukewar said the company has already funded over USD 500 million worth of trade to 400 exporters its entry into the country in 2016.

"By FY20, we aim to fund USD 1 billion of trade originating from the country," he said. It offers exporters a credit line ranging from USD 0.1 million to USD 2.5 million through both unsecured and unsecured route.

Drip Capital uses technology to provide working capital to small companies and entrepreneurs who account for 50 percent of merchandise exports from the country and employ tens of millions.

Globally, he claimed there is a trade finance gap of USD1.5 trillion globally, the majority of which is among small business exporters in emerging markets, which means so much of trade potential is foregone for lack of funding.

The company focuses on 10 industry segments such as agro commodities, readymades and industrial goods, and stay away from gems & jewellery and perishables (fruits and vegetables), Mukewar.

Trade finance is a paper-based industry dominated by banks that primarily focus on large, established corporate customers. As against this, it uses electronic data and technology to underwrite and finance cross-border B2B deals.

Drip Capital has strategic partnerships with many key export promotion organizations, including the Federation of Indian Export Organizations and the Engineering Export Promotion Council. PTI HV