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Drip Capital Inc., a digital trade-finance firm focused on small and mid-sized exporters, has secured a $50 million committed credit facility with an additional $25 million accordion option from Toronto-Dominion Bank, one of North America’s top lenders. The deal marks Drip Capital’s first collaboration with TD Bank and lifts the company’s total debt funding to more than $500 million, backed by institutions including Barclays, the World Bank’s International Finance Corporation, and East West Bank. The new capital will finance the firm’s Buyer Finance programme in North America and expand its reach in cross-border SMB financing globally. In an interview, Pushkar Mukewar, founder and chief executive officer of Drip Capital, said the company has been building relationships with institutional lenders over several years, moving from family office investors to larger banks. “With seven-plus years of track record behind us, we’re now seeing interest from many large institutions.” “We initially started with more family office capital, and then slowly started getting banks and institutions to participate in financing the assets we originate on the platform,” he added. Mukewar added that TD Bank’s participation is a good sign of validation for other lenders and that such partnerships could eventually scale to $300–400 million over time. He noted that as Drip Capital’s lender base expands, its cost of capital “continues to go down,” improving margins and allowing the company to offer lower rates to clients. Founded in 2016, Drip Capital offers collateral-free trade finance solutions to exporters in over 100 countries. The firm has financed more than $8 billion in trade transactions for over 11,000 businesses globally. In the fiscal year ending March 2025, it disbursed more than $2 billion, with India among its largest and fastest-growing markets. Drip Capital has been profitable for the past year, which Mukewar said has reduced the need for additional equity funding. “Since we’re operating profitably and able to continue investing in growth, we don’t see the need to raise equity in the near term,” he said. Founded with backing from Accel, Sequoia Capital, Wing VC, Y Combinator, and Sumitomo Mitsui Banking Corporation, the company said the latest facility will help it strengthen its role in global supply chain financing at a time when small exporters continue to face limited access to formal credit. (Edited by Jyoti Narayan)
