Drip Capital, Inc., a cross-border digital trade finance platform, said in a statement that its monthly originations have crossed $150 million in March. It is the highest originations by the company in a single month since its inception in 2016, it added.
Drip Capital provides working capital solutions to SMEs in the US and emerging markets like India and Mexico.
Currently, the global trade finance gap is estimated to be around $3 trillion and problems like high shipping costs, uneven recovery of world economies from the COVID-19 pandemic, and geopolitical tension continue to lead to global supply chain crisis. This has further stressed the cash-crunched SMBs, contributing to over 50% of international trade, it added in a statement.
“There is a growing demand for working capital among small businesses due to the ongoing supply chain crisis. Our robust underwriting model has helped us navigate the risks of cross-border transactions, providing timely credit to these businesses,” Pushkar Mukewar, Co-Founder and CEO of Drip Capital said.
“Drip’s clientele have appreciated its online and offline experience, giving them the confidence to expand their business. We will continue to capitalize on this opportunity and finance $10 billion worth of trade in the next 3-4 years,” Mukewar added.
Drip recently raised $ 175 million in fresh capital to unlock its next growth phase. The company aims to use the new funding to scale its business over the next few months.