Fintech startup Drip Capital has raised $15 million in the Series A round co-led by Sequoia Capital, Accel Partners, and Wing VC. Existing investor Y Combinator also participated in the round.
With the fresh funds, Drip Capital will primarily focus on its sales and expansion plans in India. Besides, it is also looking at entering the global markets like in Latin America and Southeast Asia.
Meanwhile, Drip Capital has also raised an undisclosed sum as debt financing from the Silicon Valley Bank (SVB) and other entities to build its loan book.
Prior to the Series A round, the Mumbai and Palo Alto-based firm had raked in $5 million seed funds from the existing investors.
Founded in 2014 by Pushkar Mukewar and Neil Kothari, Drip Capital provides working capital finance (without collateral) to small and medium enterprises, with a particular focus on export-oriented ventures.
SMEs-focused Drip offers a credit line to exporters across sectors, including agro-commodities, industrial goods, and textiles, among others in the range of $100,000 to $2.5 million. Depending on the exporter’s size and requirement, the company offers unsecured credit to SMEs at 8-10 per cent.
To access the loans, SMEs have to fill out an online document that requires minimal documentation. Drip Capital also assesses the risk of the buyer, using electronic data and automated risk assessment platforms.
The company launched its wholly-owned Indian subsidiary, Drip Capital Services India, in December 2016 and it has offices in Delhi and Bengaluru.
As of now, Drip Capital claims to have disbursed over $100 million of trade flows across industries in the last 18 months of operation.
Of late, Mumbai-based digital lending platform SMECorner secured $7 million in a mixed round of equity and debt from Capital First, existing investor Accion Ventures, and a clutch of high net worth individuals.
*Update: The earlier version of the post mentioned that Sequoia led the round. However, the company has reached out to reflect that Sequoia, Accel and Wing VC jointly led the round.