Drip Capital Secures $113 Million Funding Round Led by Japanese Investors and IFC

Drip Capital, a U.S.-based digital trade finance platform, has raised $113 million in its latest funding round. The funding consists of $23 million in equity investments from Japanese institutional investors, GMO Payment Gateway and Sumitomo Mitsui Banking Corporation (SMBC), alongside $90 million in debt financing led by the International Finance Corporation (IFC) and East West Bank.

The newly secured capital will accelerate Drip Capital’s market expansion and develop new financial products tailored to meet the evolving needs of its customers.

In 2022 and 2023, the global trade sector faced multiple challenges, including higher interest rates that squeezed margins and limited access to capital for small and medium-sized businesses (SMBs). Despite these hurdles, Drip Capital is expanding its presence in the trade finance platform for SMBs in the U.S. and India. 

“We’ve achieved cash profitability and expanded our business during this period,” said Pushkar Mukewar, Co-founder and CEO of Drip Capital. He added that the new funding would drive the next phase of growth, supported by both new and existing investors and debt partners.

Over the past two years, Drip Capital has quadrupled its revenue and doubled its customer base. The company has enhanced its offerings for SMBs by incorporating forex and risk analytics tools with its core trade financing services. These tools help SMBs manage cash flow by providing forex solutions through a partnership with a leading bank and by offering credit risk assessment tools that mitigate non-payment risks, allowing businesses to extend credit terms to trustworthy customers.

The company leverages advanced AI technologies to improve credit risk assessment, streamline operations, and deliver a better customer experience. “We believe fintech is set to revolutionize trade finance, particularly for SMBs engaged in import and export activities,” Mukewar noted. 

He also highlighted that innovations like real-time payment solutions, blockchain-based smart contracts, and AI-driven credit scoring will make trade finance more efficient and inclusive.

Ryu Muramatsu, Executive Vice President of GMO Payment Gateway, commented on the investment and expressed confidence in Drip Capital’s potential. “Drip’s innovative and comprehensive solutions in digital trade finance are transforming how SMBs engage in trade. We are proud to continue our support with additional equity investment and look forward to a strategic partnership,” Muramatsu said. 

He emphasized that Drip’s technology and proprietary underwriting methods are uniquely positioned to tackle the challenges within the trade finance space.

Keiji Matsunaga, General Manager of the Digital Strategy Department at Sumitomo Mitsui Banking Corporation (SMBC), emphasized the significance of the partnership with Drip Capital in enhancing global trade. “We are excited to contribute to the growth of society and the market by encouraging activities along the Japan-India corridor through this collaboration,” Matsunaga said. He added that combining SMBC Group’s expertise with Drip Capital’s innovative technologies will create new opportunities for small and medium-sized businesses (SMBs).

Addressing the $3 trillion global trade finance gap, Mukewar highlighted that traditional lending institutions often limit access for SMBs due to the requirement for hard collaterals, leaving many businesses underserved or entirely unserved. “By leveraging digital platforms, we can democratize access to trade finance, offering SMBs faster, more flexible financing options that are unsecured and tailored to their needs,” Mukewar explained. Drip Capital aims to bridge this gap by providing accessible financing solutions for SMBs.

With a vision to become a comprehensive trade financing and facilitation platform, Drip Capital is expanding its product range beyond core trade finance to include services like forex and raw material procurement.

 Currently active in India and the U.S., the company has financed over $6 billion in trade transactions and collaborates with more than 9,000 sellers and buyers across 100+ countries. Mukewar noted that while the immediate focus is on deepening its presence in these key markets, there are plans for future expansion into other regions.

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