Drip Capital to fund Maharashtra MSMEs trade finance gap

By Vriti Gothi

Drip Capital Inc. has signed a Memorandum of Understanding (MoU) with the Government of Maharashtra to expand access to trade finance for micro, small and medium enterprises (MSMEs) engaged in exports. The agreement was formalised on the sidelines of the World Economic Forum Annual Meeting in Davos.

Under the terms of the MoU, Drip Capital has committed to disburse $10,91,308 in collateral-free trade finance to Maharashtra-based MSMEs over the next five years (2026–2031). The initiative is intended to improve exporters’ access to working capital, enabling them to scale cross-border operations and integrate more effectively into global supply chains.

The announcement comes against the backdrop of a persistent credit shortfall in India’s MSME sector. According to findings by the Small Industries Development Bank of India (SIDBI), the sector faces a credit gap of nearly $3.3 trillion. Limited access to timely and affordable financing continues to constrain smaller businesses’ ability to expand operations and compete internationally.

MSMEs are widely recognised as a critical engine of employment and economic growth in India. However, inadequate financing remains a structural barrier to export expansion. Industry estimates suggest that narrowing the financing gap could potentially unlock $110 billion in incremental export value annually, supporting the country’s broader export-led growth agenda.

Commenting on the partnership, Pushkar Mukewar, Founder and CEO of Drip Capital, said, “Our collaboration with the Government of Maharashtra will foster financial inclusivity and resilience among MSMEs. We aim to empower local businesses with access to timely, collateral-free finance and technology solutions to drive economic growth and global scale.”

Drip Capital operates a fully digital trade finance platform that leverages automated risk assessment and data-driven underwriting to expedite funding decisions. The company has facilitated more than ₹66,000 crore in trade financing to over 11,000 businesses globally, offering collateral-free financing that enables exporters to secure capital without pledging personal assets.

The agreement signals Maharashtra’s continued efforts to attract investment and strengthen its export ecosystem. By combining public sector support with private FinTech infrastructure, the partnership aims to enhance financial inclusion, expand MSME participation in international markets, and generate direct and indirect employment through supply chain growth.

The MoU reflects a broader policy focus on leveraging digital lending models to address structural financing gaps in India’s MSME segment, particularly in trade-linked sectors where access to working capital remains critical for competitiveness.