Local angle: The promoter of Drip Capital raises $25 millionCo’s promoter from Nagpur

Nagpur: Drip Capital, a Mumbai and US based fintech start up, one of whose promoters — Pushkar Mukkewar is from Nagpur raised $25 million in its Series B funding. The funding was led by Accel, the venture capital firm formerly known as Accel Partners which had also invested in Facebook among other technology based ventures. The other participants in the funding raising — are Sequoia India, Wing VC, Y Combinator, along with new investors GCI ventures and Trusted Insight. The company has so far raised $45 million as equity along with $55 million as debt taking it $100 million of funds in all.
Talking to TOI Mukkewar said the debt part has been raised on a monthly basis since last two and half years when the company began its operations. In the current fiscal, so far it has raised $10 million as debt. Drip Capital is engaged in providing collateral free working funding to exporters. The operations have a strong technology based support, he said. The debt has been raised mainly from Silicon Valley Bank apart from certain family offices and high net worth individuals, he said.
The company which has so far funded trades valued at $500 million plans to take it to 1 $1 billion on the basis of funding that has been received in the second round, said Mukkewar.
“We had begun with catering to the Indian exporters and have lately ventured into the markets in UAE and Mexico also. Drip Capital has been offering finance to exporters dealing in 10 different segments ranging from trading in rice, chillies, shrimps to even ready made garments,” said Mukkewar.
Funds will help the company expand its operations in UAE and Mexico. In Mexico the company expects to find business from agro commodities, apart from exports of electronic items. Even in UAE business s is expected from farm products, he said.
“Drip offers credit lines ranging from $100 thousand to $2.5 million. Financing is unsecured and company uses electronic data and an automated risk assessment platform, thereby ensuring a quick turnaround of 48 to 72 hours,” he said.
The trade finance gap currently stands at $1.5 trillion globally — the majority of which is among small business exporters in emerging markets. In other words, that is, $1.5 trillion of trade that does not happen due to a lack of access to working capital, said a press release from the company.
In a nutshell
Drip Capital provides unsecured funding to exporters
Apart from India it is also eyeing expansion in Mexico and UAE
The company hopes to expand its business to funding trades worth $1 billion
It raised $10 million debt in this fiscal