Drip Capital and Vayana TradeXchange Partner to Offer Export Finance for SMEs
Drip Capital, Inc., a leading digital trade finance company, and Vayana TradeXchange (VTX), an International Trade Finance Service (ITFS) platform, announced their partnership to offer export finance solutions for small-medium-sized exporters (SMEs).
SMEs contribute approximately 45% of Indian exports. However, access to working capital remains a pain point for most of these businesses as they largely depend on traditional lenders who seek collateral and have lengthy, time-consuming processes.
Drip Capital offers post-shipment export financing solutions, bridging the working capital gap among small businesses. The fintech firm uses technology to provide easy and quick funds, enabling businesses to invest in growth. In addition, the company’s proprietary risk assessment model includes a detailed business health check of the buyers and the underlying transactions. This allows Drip to offer bill discounting facilities to exporters without pledging any collateral.
Through this partnership, Drip will leverage Vayana’s ITFS platform to provide financing solutions to SMEs by converting their trade receivables, i.e., working capital trapped in the supply chain, into cash.
Mr. Pushkar Mukewar, CEO & Co-Founder of Drip Capital, said, “We are excited to partner with a valuable market player like Vayana TradeXchange. This partnership will assist Drip in its mission to make global trade simple and accessible to small businesses. Pooling our resources together for such digital innovations in cross-border trade will further help Indian MSMEs grow and, in turn, contribute significantly to the economy and become globally competitive.”
VTX, which operates under the supervision of the International Financial Services Centre Authority (IFSCA), is a new-age auction-based electronic platform that facilitates cross-border trade financing at competitive terms for SMEs. Financiers, exporters, and importers can connect with and discover each other easily, irrespective of their size or location, through a digital platform.
Mr. Kalyan Basu, MD & CEO of Vayana TradeXchange, said, “Drip is an active factoring company based in the US with operations in India facilitating the financing of cross-border trade of small and mid-sized Indian exporters. We are happy to partner with Drip in providing access to easy and affordable export financing options to lakhs of small and medium Indian exporters. Vayana TradeXchange is a unique auction-based trade financing platform implemented and operationalized across the globe. It has immense potential in terms of capability, innovation, and reach to be the go-to platform for digitised cross-border trade finance in the days to come.”
About Drip Capital
Drip Capital is a trade-tech company that aims to simplify global trade for SMBs. It offers digitized trade financing solutions in markets like the US, India, and Mexico by providing SMEs access to collateral-free working capital. The company currently works with over 6000 sellers and buyers across 100+ countries. Drip is backed by investors like Accel Partners, Sequoia Capital, Wing VC, TI Platform, and Y Combinator. Drip was honored as a CB Insights Top 250 Global Fintech Company in 2020 and was a part of Y-combinator’s Top Companies 2022 List.
For further information on Drip Capital, please visit www.dripcapital.com.
About Vayana TradeXchange
Vayana TradeXchange is a digital trade finance platform that connects financiers, importers, and exporters from all over the world to ensure working capital is available seamlessly at rates discovered through a transparent bidding mechanism. It is owned and operated by Vayana (IFSC) Pvt. Ltd., a wholly-owned subsidiary of Vayana Network. Vayana is India’s largest trade finance platform, with over USD 12 billion in trade flows to more than 2,00,000 enterprises across 1000+ supply chains. With its proprietary technology, Vayana has processed over 3 million transactions, with the network today spanning 600 cities and 1450+ pin codes in India and extends to 20 countries across the globe. Vayana is also India’s largest GSP (GST Suvidha Provider), facilitating GST, E-Way bill, and E-invoicing for numerous corporates and lakhs of SMEs. Vayana TradeXchange is among the new-generation International Trade Finance Services (ITFS) platform regulated by the guidelines issued by International Financial Services Centres Authority (IFSCA), GIFT City. Buyers, sellers, and financiers can register with VTX by visiting https://vayanatradexchange.com/.
