Level Info – USA – Y Combinator-Backed Drip Capital passes a $ 1 billion milestone in small business trade finance

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MSME Credit and Finance: Y Combinator-backed trade finance firm Drip Capital for Small and Medium-Sized Enterprises (SMEs) has surpassed $ 1 billion – billion milestone in cross-border trade finance transactions Founded in 2015 via its platform Drip, it finances the value of the exporter’s invoice at the time the consignment note is issued after the shipment. The consignment note is a document listing the type, quantity and destination of the goods being transported.The exporter has to pay a one-time processing fee, a Pay factoring fee on each invoice and interest between 4.5 percent and 9 percent per year

« As India eased its lockdowns and demand returned from consumer-facing economies such as Europe and the US, MSMEs’ need for working capital has increased, further underscoring the need for alternative financing solutions such as Drip Capital The company recorded for the past three Quarter-on-quarter growth of 50 percent, « said Pushkar Mukewar, Co-Founder and CEO of Drip Capital to Financial Express Online

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Unlike traditional financial institutions, Drip Capital claimed to use data analytics and technology to draw loans The company works with more than 1500 sellers and buyers worldwide and over 700 exporters in 60 cities in India together, so the company Drip has secured equity and debts of almost 200 million US dollars since 2016. In addition to Y Combinator, Accel Partners, Sequoia Capital and Wing VC are among its members Investors

The government had also urged MSMEs to integrate the TreDS platforms like the Receivables Exchange of India, M1xchange and Invoicemart to further unlock the value of their invoices and ease the working capital crisis it had in September last year on the fees from 10000 rupees for the integration of the TReDS platforms waived until March 2021 The government had also integrated the new portal for registering MSMEs – Udyam Registration at TReDS and the state e-commerce platform GeM for seamless transactions The MSME ministry also had private Businesses Reminded to Join TreDS to Solve Late Payment Issue as it was approved by the government in 2018 for all CPSEs and companies with over $ 500 billion in revenue Rupees was prescribed

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Finance, Small & Medium Business, Sequoia Capital

LevelInfo – USA – Y Combinator-backed Drip Capital passes a $ 1 billion milestone in small business trade finance
Related title :
Y Combinator-Backed Drip Capital Exceeds $ 1 Billion Milestone in Small Business Trade Finance
>> Drip Capital exceeds $ 1 billion in cross-border trade receivables finance transactions
Sequoia-Backed Drip Capital Finance Over $ 1 Billion USD cross-border trading

Source: https://www.financialexpress.com/industry/sme/msme-fin-y-combinator-backed-drip-capital-crosses-1-billion-milestone-in-trade-financing-for-small-businesses/2171129/

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