TheNFAPost Podcast

Mumbai, NFAPost: Drip Capital, a leading Fintech provider of cross-border trade finance, and East-West Bank (EWB) announce a $40 million committed credit facility for the expansion of Drip’s trade finance solutions to small and medium-sized businesses (SMBs).

Drip Capital Cofounder and CEO  Pushkar Mukewar said Drip is growing at a rapid pace and institutional partnerships are a cornerstone of our capital markets strategy.

“The partnership with East West Bank represents a significant milestone for our Company. It will further accelerate our ability to provide fast and seamless financing to global exporters and importers. We are excited to work with Mark Parsa and the EastWest team as we scale up our operations to service many more customers,” said Pushkar Mukewar.

Cross-border finance

East West Bank Manager of Structured Finance FVP-Relationship Kristine H. Pfeilsticker said East West is pleased to provide financial support to a global fintech company like Drip Capital to help them achieve their growth plan.

“We both have extensive experience in cross-border financing and a shared focus on offering innovative solutions to SMBs,” said Kristine H. Pfeilsticker.

Drip Capital Head of Capital Markets Karl Boog said this new asset-based credit facility provides Drip with considerable incremental financing capacity to help power the next phase of our company’s growth.

“We are excited to scale our capital markets programs providing unprecedented access to trade finance assets.  Despite the pandemic and resulting dislocation in capital markets, we have been extremely impressed with the execution and solutions-oriented approach by the East West Bank team,” said Karl Boog.

Buyer financing solution

Drip Capital is a market leader in the global trade finance space. The company offers trade financing solutions in the US and developing markets like India and Mexico by giving their clients access to working capital quickly.

Drip works with over 1,500 sellers and buyers spread across 80+ countries. The FinTech firm has financed over $1.2 billion of international trade since its inception in 2016.

In the US, Drip provides buyer financing solutions — supply chain finance and inventory finance — to SMB importers, who further cater to the multinationals across the country.

The company acts as a strategic financial partner to these SMBs allowing them to effectively manage their cash flows / working capital to accelerate sustainable business growth.

 Drip has raised nearly $200 million through venture capital and debt since 2016, including over $45 million in equity capital through investors such as Accel Partners, Sequoia Capital, Wing VC, and Y Combinator.

Independent bank

East West Bancorp is a publicly owned company with total assets over $50 billion and is traded on the Nasdaq Global Select Market under the symbol “EWBC.”

The Company’s wholly-owned subsidiary, East West Bank, is one of the largest independent banks headquartered in California and one of the largest minority depository institutions in the United States.

The bank provides commercial and consumer banking services that help clients reach further and connect to new opportunities on both sides of the Pacific.

East West Bank operates more than 120 locations in key cities in the US and Greater China. The bank’s Structured Finance group provides senior secured lending facilities to specialty finance companies and project finance transactions.

Capital problem

Drip Capital is a global financial technology company backed by Accel, Sequoia, Wing VC, and Y-Combinator. Drip offers unique and innovative trade financing solutions to solve working capital problems among small and medium-sized businesses in emerging markets like India and Mexico and developed markets like the US.

The financing solutions are collateral-free and offered through a completely digital process. To apply for Drip’s offering, customers need to complete a quick online application with minimal paperwork.

The company uses electronic data and an automated risk assessment platform, thereby ensuring a quick turnaround. Drip Capital was recently honoured as a CB Insight’s Top 250 Global Fintech Companies in 2020.

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