Accel leads $25m round for India's Drip Capital

Existing investors Wing VC, Sequoia India, and Y Combinator participated in the round, along with new investors Trusted Insight and GC1 Ventures. The investment brings Drip’s total equity raised to $45 million, following a $15 million Series A round last June and a $5 million seed round in 2017; the company has also raised $55 million in debt capital.

Founded in 2016, Drip provides working capital loans for creditworthy export-oriented businesses in emerging markets that have difficulty gaining access to financing due to inefficient local financial systems. The company has provided more than $500 million to 500 importers across 60 countries, and claims to be the first source of trade finance for 80% of its clients.

Drip is planning to expand its geographical reach, recently launching operations in the United Arab Emirates, Mexico, and the US. The company is also adding a new business line focused on providing working capital for importers, which will in turn expand business opportunities for export businesses.

“SME exporters in emerging markets contribute to over $2 trillion of global trade flows, but half of the small businesses get turned down by banks for the capital they need,” said Arun Matthew, a partner at  Accel, in a statement. “Drip’s technology and proprietary underwriting enables it to identify these creditworthy SMBs and provide them with the working capital they need to grow.”

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• Topics
• South Asia
• Financials
• Support services
• Early-stage
• India
• Financial Services
• Sequoia Capital
• Accel Partners