Drip Capital

Drip Capital is a California-based trade finance company that provides working capital to small and medium sized exporters in the emerging markets using technology and data.[1][2] The company is headquartered in Palo Alto, California[3]

Drip Capital
Type of site
Private
Founded2014
HeadquartersPalo Alto, California
Founder(s)Pushkar Mukewar
Neil Kothari
Key peoplePushkar Mukewar (Co-CEO) Neil Kothari (Co-CEO)
IndustryFinance
Employees150+
URLdripcapital.com

History

The company was founded in November 2014 by Wharton School alums Pushkar Mukewar[4] and Neil Kothari.[5] Using their prior experience in finance and technology, they set up the company to bridge the trade finance gap for SME exporters worldwide.[6][7]

In 2016, Drip Capital launched its Indian subsidiary, Drip Capital Services India LLP to begin operations in the country. Since the start of operations, Drip Capital has raised $45 million in venture funding from investors including Accel Partners, Wing VC and Sequoia India and $55 million in debt funding, making the total raise $100 million.[8][9][10][11][12]

As of 2018, it has funded more than $500 million of trade.[13][14][15]

Products and services

Drip Capital currently offers post-shipment[16] export finance to small and medium sized exporters in emerging markets. Exporters can avail collateral-free export finance based on the strength of their buyers and their track record. Drip Capital assesses the risk of the buyer by leveraging electronic data and automated risk assessment. The company offers credit lines ranging from $100,000 to $2.5 million, depending on the exporter's size and requirement.[17]

Of late, Drip Capital has been extensively engaging with various trade associations and export promotion councils like FIEO, EEPC, CHEMEXCIL, and PLEXCONCIL to educate exporters about its product offerings. [18]

Funding

In 2015, the company raised a seed round of $4.5 million from Accel Partners and Wing Ventures.[19] In June 2018, the company raised $15 million Series A round from Accel and Sequoia India.[20][21][22] Later in the year, it raised further debt financing from Silicon Valley Bank and others.[23] In July 2019, the company raised $25 million Series B round from Accel, Wing, Sequoia India, Y-Combinator, Trusted Insight and GC1 Ventures.[24]

References
  1. Bureau, Our. "Drip Capital offers easy finance to MSME exporters". @businessline. Retrieved 2019-04-06.
  2. "Drip Capital raises $15 mn from Accel, Sequoia and others". www.fortuneindia.com. Retrieved 2019-04-06.
  3. "Fintech firm Drip Capital raises $15 mn". The Hindu. Special Correspondent. 2018-06-21. ISSN 0971-751X. Retrieved 2019-04-06.CS1 maint: others (link)
  4. "Invoice factoring has great potential to help SME exporters: Drip Capital co-founder". www.smetimes.in. Retrieved 2019-04-06.
  5. "Accel, Sequoia and others invest in trade finance firm Drip Capital". VCCircle. 2018-06-21. Retrieved 2019-04-06.
  6. Network, Knn India-Knowledge & News. "Drip Capital helps Kochi exporters and SMEs capitalize on trade finance solutions". knnindia.co.in. Retrieved 2019-04-06.
  7. Chakraborty, Subhayan (29 March 2019). "Apparel exporters fear tough year ahead as global orders fall". Business Standard.
  8. R, Rahul (2018-06-25). "Accel Partners and Sequoia Join Hands on New Series A Funding". Entrepreneur. Retrieved 2019-04-06.
  9. Kothiyal, Kavya (2018-06-21). "Drip Capital raises $15 million from Accel, Sequoia, Wing VC". www.livemint.com. Retrieved 2019-04-06.
  10. "Drip Capital plans to expand into new markets across the world official". www.uniindia.com. 22 March 2019.
  11. Upadhyay, Harsh (2018-06-21). "Sequoia leads $15 Mn Series A round in fintech startup Drip Capital". Entrackr. Retrieved 2019-04-06.
  12. "Drip Capital raises $25M to help exporters access working capital". TechCrunch. 24 July 2019.
  13. "Drip Capital raises $25M to help exporters access working capital". Tech Crunch. 24 July 2019.
  14. "Rice exports to pick up in 2019 overcoming current slump: Study". The New Indian Express. Retrieved 2019-04-06.
  15. "Apparel exports to see flat growth on falling overseas demand". Moneycontrol. Retrieved 2019-04-06.
  16. Bureau, Our. "Drip Capital offers easy finance to MSME exporters". @businessline. Retrieved 2019-04-08.
  17. www.ETtech.com. "Drip Capital raises $15M from Sequoia Capital, Accel Partners & others - ETtech". ETtech.com. Retrieved 2019-04-08.
  18. https://www.livemint.com/companies/start-ups/drip-capital-raises-25-million-from-accel-sequoia-india-others-1563969026971.html. Missing or empty |title= (help)
  19. www.ETtech.com. "Drip Capital raises $15M from Sequoia Capital, Accel Partners & others - ETtech". ETtech.com. Retrieved 2019-04-06.
  20. Sarkar, Ranju (2018-06-21). "Sequoia Capital, others open $15-mn tap for Drip Capital's trade financing". Business Standard India. Retrieved 2019-04-06.
  21. Geron, Tomio (2018-06-22). "Drip Capital Raises $15 Million for Cross-Border Financing". Wall Street Journal. ISSN 0099-9660. Retrieved 2019-04-06.
  22. "Drip Capital raises $15 million from Accel, Sequoia and Wing VC". DealStreetAsia. Retrieved 2019-04-06.
  23. "YCombinator-Backed Drip Capital Raises $15 Mn Equity Funding". Inc42 Media. 2018-06-21. Retrieved 2019-04-06.
  24. "Accel Partners leads $25 million Series B funding round in Drip Capital". The Economic Times. 2019-07-25. Retrieved 2019-07-27.
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