# Drip Capital

Startup profile on Capital Atlas: https://capitalatlas.ai/startups/drip-capital

- Industry: Software
- Headquarters: Palo Alto, US
- Website: www.dripcapital.com
- Total disclosed funding: $108M
- Latest round: Series C (Sep 5, 2024)
- Investors on record: 15

## About

Based in the US, Drip Capital Inc. provides innovative trade finance solutions aimed at facilitating both domestic and international trade for businesses, helping them manage cash flow effectively.Drip Capital Inc. focuses on delivering trade finance solutions for companies involved in global trade. Founded in 2015 in Palo Alto, US by Neil Kothari and Pushkar Mukewar, the company has successfully completed 12 deals to date. Their latest funding round, Series C, raised USD 23.00 mn from investors including GMO VenturePartners and Sumitomo Mitsui Banking Corporation, bringing their total amount raised to USD 23.00 mn and current valuation to USD 309.644 mn.Drip Capital Inc. specializes in trade finance solutions, primarily offering unsecured credit lines tailored for businesses engaged in both domestic and international trade. Their flagship service allows clients to buy goods while extending payment terms, enabling businesses to pay for invoices up to 120 days later. The process begins when clients submit an invoice, after which Drip Capital pays the vendor directly, alleviating cash flow pressures. The company targets importers and exporters across various sectors, aiming to enhance purchasing power and optimize working capital, operating predominantly in the USA, India, and Mexico.Drip Capital generates revenue through transaction fees associated with their financing services, structured around the credit lines provided to clients. When a business utilizes Drip's services, they submit an invoice for payment, leading to a direct transaction where Drip pays the vendor. The fees are based on the amount financed and the duration of the repayment period, which can reach up to USD 3 mn. This model allows businesses to maintain liquidity while engaging in trade across diverse industries.In September 2024, Drip Capital Inc. raised USD 90 mn in venture debt funding co-led by the International Finance Corporation and East West Bank. This funding, part of a larger USD 113 mn venture and debt round, will be utilized to scale up disbursals. The company plans to expand its services into new markets and geographic regions, although specific target locations have not been disclosed. Additionally, the company is expected to explore new products designed to enhance its trade finance offerings.

## Funding rounds

- Series C, Sep 5, 2024, $23M — Sumitomo Mitsui Banking Corporation, GMO VenturePartners
- Series C, Oct 28, 2021, $40M — Accel, Hong Shan, Wing, Transpose Platform Management, GC1 Ventures, IRONGREY
- Series B, Jul 24, 2019, $25M — Accel, Hong Shan, Y Combinator, Trusted Insight, Inc., Wing, Bragiel Brothers, Abstract Ventures, GC1 Ventures
- Series A, Jun 21, 2018, $15M — Accel, Hong Shan, Y Combinator, Wing
- Seed, Jan 1, 2017, $5M — Accel, Y Combinator, Initialized Capital, Caffeinated Capital, Wing, Liquid 2 Ventures
- Seed, Jun 1, 2014 — Y Combinator

## Investors

- Y Combinator (https://capitalatlas.ai/funds/y-combinator) — Seed, Series A, Series B
- Accel (https://capitalatlas.ai/funds/accel) — Seed, Series A, Series B, Series C
- Initialized Capital (https://capitalatlas.ai/funds/initialized-capital) — Seed
- Caffeinated Capital (https://capitalatlas.ai/funds/caffeinated-capital) — Seed
- Wing (https://capitalatlas.ai/funds/wing) — Seed, Series A, Series B, Series C
- Liquid 2 Ventures (https://capitalatlas.ai/funds/liquid-2-ventures) — Seed
- Hong Shan — Series A, Series B, Series C
- Trusted Insight, Inc. — Series B
- Bragiel Brothers (https://capitalatlas.ai/funds/bragiel-brothers) — Series B
- Abstract Ventures (https://capitalatlas.ai/funds/abstract-ventures) — Series B
- GC1 Ventures (https://capitalatlas.ai/funds/gc1-ventures) — Series B, Series C
- Transpose Platform Management (https://capitalatlas.ai/funds/transpose-platform-management) — Series C
- IRONGREY (https://capitalatlas.ai/funds/irongrey) — Series C
- Sumitomo Mitsui Banking Corporation — Series C
- GMO VenturePartners (https://capitalatlas.ai/funds/gmo-venturepartners) — Series C