Drip Capital, a startup that helps small and medium-sized exporters secure working capital, has raised $25 million to expand its reach globally.
The Series B financing round for the two-and-a-half-year-old startup was led by Accel and Boosts Total Venture. In an interview with TechCrunch, Neil Kothari, co-founder and co-CEO of the startup, said Drip Capital has also raised $55 million in debt funding over the last two years, making the startup’s total raise $100 million.
Exporters worldwide have to wait for about 60 days (if not more) before they get paid. This creates an immense challenge for millions of small and medium-sized exporters who don’t have any savings to process additional orders until they get paid from their previous clients.
“Despite the fact that they’re reputable, credit-worthy businesses, over half of them still get turned down by banks for the capital they need. We invested in Drip to change this,” said Arun Mathew, a partner at Accel.
After signing up to the platform, an exporter can submit their invoices and open a credit line to finance their next orders.
Drip Capital works with investors and lenders in developed markets to help exporters secure financing. The startup, which has