Drips Capital, a financial technology startup has raised $15 million in a new funding round.
The companies that participated in this round were venture capital firm Sequoia Capital along with existing investors Accel Partners and Wing VC. Based out of Palo Alto and Mumbai, Drips Capital has till date raised over $20 million in equity financing since its inception and it has also raised $5 million through seed funding round in January last year when investors like Accel partners, Wing VC and Y Combinator became its investors.
“We launched in India about 18 months ago. Our target market has been India, but the product we have built was to solve the working capital gap for SMEs and exporters across emerging markets,” Pushkar Mukewar, co-founder and co-CEO of DripCapital, told ET. “The main focus will be to continue building out our sales presence and expand in India, and also launch the model in other emerging market geographies.”
In addition to this funding, Drips Capital has also raised amount in debt financing from Silicon Valley Bank (SVB) and other entities. Although the amount raised remains undisclosed. The company is looking forward to enter the Latin America and Southeast Asia market.
“We have raised debt capital from SVB and other investors in the US, and that capital will essentially be used to help build our lending book,” Neil Kothari, co-founder and co-CEO of Drip Capital, told ET. The company launched its wholly-owned Indian subsidiary, Drip Capital Services India, in December 2016.
“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,” Mohit Bhatnagar, managing director at Sequoia Capital India, said in a statement.
Drip Capital was formed in 2014 by Wharton School Alums Mukewar and Kothari. The company currently has offices in Delhi and Bangalore. The company gives working capital finance, without collateral, to small and medium enterprises, with a specific focus on export-oriented ventures. They offer a credit line to SME exporters across different sectors as well as agro-commodities, industrial goods, and textiles which allow them to draw against the same each time they have a shipment going out.