Drip Capital partners with East West Bank for a $40 million credit facility for SMB traders

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March 25, 2021 9:17 PM

Credit and Finance for MSMEs: Drip Capital expects to reach 700-1,000 SMBs over the next two years and increase its customer base in India by 50 per cent.

Drip Capital, East West Bank, $40 million, credit facility, SMB, MSMEs, traders, trade finance, fintech, import export, small and medium-sized businesses, Pushkar Mukewar, Drip Capital, Pushkar Mukewar Drip Capital, investors, Accel Partners, Sequoia Capital, Wing VC, and Y Combinator


Credit and Finance for MSMEs:
Drip Capital, the fintech firm that focuses on providing trade finance to exporters and importers announced its partnership with California-based East-West Bank (EWB) for a $40 million credit facility. The credit will be used by Drip Capital to offer its trade finance solutions to a wider range of small and medium-sized businesses (SMBs).

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“In the past, we have engaged with a lot of family offices and funds but getting a strong bank partner is also an important milestone for the company. It helps to prove to the investor community that banks are interested in this asset and are wanting to finance these assets,” Pushkar Mukewar, Co-Founder and CEO, Drip Capital told Financial Express Online.

“This new asset-based credit facility provides Drip with considerable incremental financing capacity to help power the next phase of our company’s growth,” said Karl Boog, Head of Capital Markets at Drip Capital.
Drip Capital offers financing solutions to importers and exporters in the US and developing markets like India and Mexico to enable them to access working capital quickly. The fintech firm claims to have financed over $1.2 billion of international trade since its inception in 2016. It works with over 1,500 sellers and buyers spread across 80-plus countries.

“Post this funding, we expect to reach 700-1000 SMEs over the next 1-2 years and increase our customer base from India by 50 per cent,” Mukewar said. He added that the average ticket size for each loan for SMEs is $25-30,000 for 40-45 days.

In the US, Drip provides SMB importers buyer financing solutions such as supply chain finance and inventory finance to enable them to manage their cash flows.

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

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