Drip Capital, focused on financing for small and medium-sized companies (SMEs), announced a raise of resources for 175 million dollars, which are part of the closing of its series C investment round and a debt lift with Barclays and East West Bank.
This Thursday, the firm announced that, after this capital raise, it will focus on deepening its operation in Latin America, in addition to growing local teams in the countries where it operates such as Mexico, the United States and India.
“SMEs represent 99.8% of companies in Mexico; Of this figure, two thirds do not have sufficient access to capital to operate or grow. Drip Capital’s goal is to provide these companies with effective solutions so that the lack of working capital is not an obstacle to boost their exports, imports and national sales ”, commented Edmundo Montaño, general director of Drip Capital Mexico.
The series C completed by Drip Capital, for $ 40 million, was obtained from the venture capital fund Trusted Insight and other previous investors such as Accel, Sequioea, Wing VC, Irongrey and GC1 Holdings.
It also raised $ 100 million in debt from Barclays and an increase in its credit line of $ 35 million with East West Bank.
According to the firm, these resources will serve to scale its business in the next 18 months. The investment will focus on product and technology, accelerating growth in markets, as well as reaching new geographies in Asia and Latin America.
“The Covid-19 pandemic has put severe pressure on the cash flows of both exporters and importers. This is especially felt among SMEs, who have never had easy access to capital, ”said Pushkar Mukewar, director and co-founder of Drip Capital.
The company has increased its financing volume 10 times in the last year in Mexico, with which it has exceeded 200 million dollars financed in the country and globally, the company has financed more than 2 billion dollars in global transactions in 80 countries and raised more than $ 525 million in equity and debt financing.