Drip Capital raises $ 20 million in funding from Accel, Wing VC and Sequoia India. The company is helping small emerging market exporters access working capital to fund large orders.
The startup also participated in Y Combinator in 2015. Many small businesses in emerging markets have to decline orders because they can not finance large orders. Even if you have found a customer in the United States or Europe, it is likely that companies end up paying your order a month or two after signing a contract.
If you are an importer or exporter, capital is probably your most valuable resource. You know where to find your products and how to ship many products. But you must always buy property yourself.
And in many emerging markets, you have to pay right away. This creates a kind of capital gap.
At the same time, local banks are often too slow and reject too many credit applications. Drip Capital thinks there is an opportunity for a technology platform that funds exporters in no time.
The startup focuses first on India as it meets many of the criteria that I have listed. This could be particularly useful for small and medium enterprises. Large companies do not necessarily face the same problems because they can access capital more easily.
Up to now, Drip Capital has financed more than 100 million dollars of trade. After registering for the platform, you can submit invoices and open a line of credit to finance your next orders. Family offices and institutional investors can also invest money in the Drip Capital fund and get a return on investment.
This is not the only platform that helps you get paid faster. But big companies tend to do everything and optimize the supply chain for the largest companies in the world. Drip Capital focuses on a specific vertical.
With the roundtable of today, the company plans to attract more customers and expand to other countries.