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Drip Capital and Vayana TradeXchange to offer export finance for SMEs

By Leandra Monteiro

December 23, 2022

  • Digital Lending
  • Drip Capital
  • Export Finance
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Drip CapitalDrip Capital, Inc., a 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.

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.

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.”

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