Financing relief for India’s small exporters
Drip Capital, a U.S.-based trade finance firm, is expanding operations in India to support small and medium-sized exporters facing limited access to credit. Backed by a new US$75 million debt-financing facility, the company aims to close critical funding gaps and accelerate export-led growth across India’s SME sector.
This move signals how digital lending platforms are transforming trade finance in Asia—offering faster, data-driven solutions for businesses often overlooked by traditional banks.
Bridging the trade-finance gap in India
Founded in 2016 in Palo Alto, Drip Capital provides cross-border trade finance using digital tools and data analytics. Unlike banks, it offers short-term capital to exporters without the need for physical collateral, speeding up cash flows between shipment and payment.
Drip entered India soon after its launch and is now one of the country’s leading alternative financiers for export-focused SMEs. The company partners with banks, insurers, and funds to finance invoices and shipping transactions.
Exporters in India—especially in sectors like textiles, chemicals, and agriculture—have been hit hard by global trade slowdowns and tightening credit. According to the Export-Import Bank of India, the country’s trade-finance shortfall exceeds US$300 billion each year. This gap forces many small businesses to turn to informal, costly lending options.
The fresh US$75 million will be used to grow Drip Capital’s invoice-financing portfolio, improve turnaround time for payouts, and upgrade its credit analytics engine—all delivered via its digital platform.
Scaling fintech solutions for SME exporters
Drip Capital’s India strategy blends fintech innovation with local market knowledge. Over the next two years, the company plans to double its credit exposure in India. It will also launch AI-powered risk tools to speed up decisions and reduce default risk.
“India’s exporters are resilient, but working capital remains a hurdle,” said CEO and co-founder Pushkar Mukewar. “Our goal is to give SME exporters fast and transparent financing—especially when global credit is under pressure.”
Drip’s approach is different from banks. It analyzes invoice history, buyer reputation, and trade performance instead of demanding fixed assets as security. Once approved, exporters can receive funds in days—a major benefit in industries where slow payments can halt production.
Drip’s Mumbai-based team is expanding partnerships with export councils and digital platforms. They are targeting manufacturing zones like Surat, Ludhiana, and Tiruppur. Plans include onboarding SMEs through logistics tech and online marketplaces to simplify the financing process.
The move aligns with India’s Digital Trade Infrastructure push, which supports paperless trade and fintech adoption. By working with official bodies and industry groups, Drip aims to support India’s US$2 trillion export goal for 2030.
Asia’s trade-finance model is changing
Drip Capital’s India expansion reflects a broader change in how trade finance works across Asia. As banks pull back, digital lenders are stepping in with leaner, faster, and more inclusive credit options.
Traditional lending often excludes SMEs that can’t meet strict collateral demands. In contrast, fintechs use real-time trade data and automation to assess creditworthiness. This shift is making capital more accessible for exporters in countries like India, Vietnam, and Indonesia.
India’s role in global supply chains is also growing—especially in sectors like electronics and renewables. These industries need agile finance solutions that can respond to market changes. Fintech firms like Drip are filling this need with tech-first, data-led products.
According to the Reserve Bank of India, SMEs contribute nearly 40% of the country’s exports but get less than 20% of trade credit. Drip’s entry could help level that gap, bringing more fairness and efficiency to the system.
A blueprint for regional fintech growth
Drip Capital plans to make India its largest market in Asia. Alongside its operations in the U.S. and Mexico, the firm is exploring partnerships with development banks and export agencies to co-finance deals and expand its digital backbone.
New features on the horizon include multi-currency finance, ESG-linked trade loans, and real-time dashboards for exporters. These tools will target businesses in clean energy, smart manufacturing, and global e-commerce.
India may also serve as a launchpad for Drip’s future in Southeast Asia. Countries with export-heavy economies and limited trade credit could benefit from the same scalable fintech model.
By using automation, risk analytics, and local partnerships, Drip aims to modernize trade finance across the region.
Fintech reshapes export finance in India
Drip Capital’s US$75 million expansion marks a pivotal moment for Indian exporters. As working capital becomes harder to access, fintech-led finance is offering SMEs a practical path forward.
With fast approvals, data-based risk tools, and cross-border insights, Drip is helping Indian SMEs stay competitive in global markets.
As Asia becomes a key engine for global trade, this expansion shows how digital finance can unlock the potential of small exporters—making trade more fair, fast, and future-ready.
