By Abhirami G
BENGALURU (Reuters) -U.S. trade finance firm Drip Capital plans to expand its operations in India as demand for working capital grows from small and medium-sized Indian exporters, hurt by punitive U.S. tariffs, CEO Pushkar Mukewar said.
The Palo Alto-based firm, backed by investors including Accel, Peak XV and Sumitomo Mitsui Banking Corp, raised $75 million in debt funding from Canadian lender TD Bank last week, taking its total debt financing to over $500 million.
The U.S. imposed a 50% tariff on Indian goods in August, resulting in uncertain order flows to the South Asian nation’s top export destination, prompting businesses across industries from textiles to fisheries to scramble for buyers across Europe, Africa and Asia.
The Indian government is yet to announce any financial or credit support for affected exporters but has directed banks to ease credit access for the sector.
Drip Capital has facilitated over $8 billion in trade finance transactions to date, providing credit, working capital, and smoothening payments for exporters, with 60–70% of its portfolio originating from India.
SMEs’ working capital needs have gone up in the past six months due to U.S. President Donald Trump’s tariffs on various countries, Mukewar told Reuters, noting strong demand from sectors such as agri-commodities and textiles.
Small and medium enterprises account for nearly half of exports from India, which aims to reach $1 trillion in export value this financial year.
Drip Capital facilitates about $2 billion in credit annually and aims to grow that by 25% over the next year as exporters look to diversify away from the U.S.
That’s a trend that’s set to continue long-term as relying on a broader set of markets “is perhaps better for most,” Mukewar said.
(Reporting by Abhirami G in Bengaluru; Additional reporting by Ashwin Manikandan; Editing by Dhanya Skariachan and Ronojoy Mazumdar)
