Silicon Valley-based fintech firm Drip Capital has secured a $40 million warehouse credit line from the California-based East-West Bank to expand its trade finance solutions to small businesses. Backed by Accel and Sequoia, the startup deals with cross-border trade finance and India is its largest market.

Pushkar Mukewar, Co-founder & CEO, Drip Capital, told PTI that as much as 50 percent of the credit line will be deployed in India. He also mentioned that the firm's partnership with East-West Bank represents a significant milestone for Drip Capital. It will further accelerate the company’s ability to provide fast and seamless financing to global exporters and importers.

The firm has so far raised $200 million through venture capital and debt including over $45 million in equity through investors such as Accel Partners, Sequoia Capital, Wing VC, and Y Combinator.

Founded in 2016, Drip Capital is also a major player in the US and Mexico. The company’s CEO further mentioned that Drip Capital offers trade financing solutions in the US and developing markets like India and Mexico by giving their clients access to working capital quickly. It works with over 1,500 sellers and buyers spread across over 80 countries and have so far financed over $1.2 billion of international trade.

In the US, Drip Capital provides mostly buyer finance such as supply chain and inventory finance, to small importers while in India and Mexico it gives seller finance. It lends collateral-free and is fully digital.

The company forayed into the Indian market four years ago and Mexico in 2019. It also services exporters in Ecuador, Bangladesh, and the UAE. Mukewar also said that Drip Capital prices almost one percent of the financed amount depending on the ticket size, which averages around $40,000 duration and nature.