Drip Capital, Inc., a leading cross-border digital trade finance platform, today announced a collaboration with CARGOES Finance By DP World, a platform that enables rapid and seamless access to working capital for emerging-market small and medium-sized enterprises (SMEs).
SMEs are one of the most integral components of the global supply chain but often face a working capital crunch to facilitate their cross-border transactions. Moreover, the Covid-19 induced supply chain disruptions, the resulting equipment shortage, soaring raw material costs, to name a few, have added to the woes of this sector, forcing SMEs to scout for alternate lending services.
Drip Capital offers collateral-free financing solutions for SMEs engaged in cross-border trade, thereby allowing them to manage their cash flow better and invest in business growth. The fintech firm collaborates with crucial global industry enablers across the value chain for making international trade seamless for SMEs.
DP World's CARGOES Finance Platform facilitates lender-borrower interactions and arranges an array of credit solutions from premier financial institutions worldwide. A partnership such as this will help cash-crunched SMEs avail fast and easy access to trade financing by connecting them to Drip.
Elaborating on the collaboration, Pushkar Mukewar, Co-Founder and CEO of Drip Capital, said, "To be a part of DP World's massive network and get access to a large number of SMEs is a great privilege, and we are excited to begin this journey with them. Besides this, the platform will provide Drip with vital trade data to improve its risk analysis and mitigation processes, thereby helping us procure more clients and lend more confidently. Overall, the partnership will assist us in our mission to make global trade easy and accessible to SMEs worldwide."
For DP World, the alliance will aid in leveling the playing field for exporters, importers, and logistics companies so they can continue to scale and contribute to global trade.
Sinan Ozcan, Senior Executive Officer, DP World Financial Services Limited, said: "DP World's objective is to enable global trade. Access to trade finance is critical for the survival and growth of exporters, importers, and logistics companies which are the drivers of the global economy. CARGOES Finance platform provides financial institutions the opportunity to lend with confidence and helps smaller companies to access the capital they need. We are excited to partner with Drip Capital in this journey in key markets including but not limited to India, UAE, and the US, and are looking forward to jointly supporting companies in their endeavors to access competitive financing to enable their trade."
Mike Bhaskaran, COO Logistics & Technology, DP World, said: "Access to working capital is one of the key problems that is still restricting the growth of the SME segment. For any economy, solving this problem is critical to increase SME participation in global trade. With the launch of CARGOES Finance platform, DP World is leveraging its substantial experience in global trade to solve this problem and help SMEs increase their contribution to global trade. Partnering with agile fintech companies like Drip Capital will help DP World offer competitive and innovative financial solutions on the platform to the benefit of all SMEs."