Mumbai, July 19 (KNN) Drip Capital has signed a memorandum of understanding (MoU) with Federation of Indian Export Organizations (FIEO) to provide exporters with training in technology and invoice factoring. The partnership will give small-and medium-sized exporters exposure to fintech solutions, widely considered to be one of the biggest disruptors in cross-border trade.

The Drip-FIEO partnership aims to help exporters understand these opportunities better. The existing paper-based trade finance system is inefficient and biased against smaller exporters. These exporters spend time they cannot afford in battling bureaucracy and slow processing times, as well as demands for collateral

Co-Founder and Co-CEO, Drip Capital Pushkar Mukewar said “Our idea is to create an automated platform that would address the working capital needs of SMEs, not just in India, but across the world. What we want is to level the playing field for SMEs everywhere and give them easy access to trade finance.”

He stated that helping SME exporters with trade finance also feeds into a larger goal of giving the country’s overall economy and GDP growth a boost. Multilateral agencies like the World Bank have found that economies gain immensely when trade increases, especially in the MSME sector.

Director General & CEO, FIEO, Ajay Sahai said, “In India, MSMEs contribute to about 50% of the total exports (merchandise as well as services). It is vital that this segment is given a boost. A growth in exports will mean a stronger economy, and this segment has the potential to create more jobs in India.”

Under the provisions of the memorandum, FIEO, in partnership with Drip Capital, will conduct a series of awareness raising events among MSME exporters across the country.

The memorandum between Drip and FIEO will also result in the creation of an online platform that will help exporters free up their working capital (locked in export receivables) by discounting them.

Through this platform, Drip Capital will underwrite and set up post-shipment credit facility for exporters in a transparent and hassle-free manner.

Drip Capital has signed a memorandum of understanding (MoU) with Federation of Indian Export Organizations (FIEO) to provide exporters with training in technology and invoice factoring. The partnership

The memorandum was signed by Khalid M Khan, Regional Chairman, FIEO and PushkarMukewar, Co-Founder and Co-CEO, Drip Capital.

Speaking about the partnership, Khan said that technology is an important element of trade finance, as it can reduce the need for red-tape and paperwork. This will help exporters’ access credit easily, leading to an improvement in export numbers.

Drip Capital has financed over $500 million of international trade originating from India so far, helping exporters in 60+ cities across the country ship products to buyers in more than 50 countries around the world.

The partnership with FIEO will help Drip reach out to even more SME exporters in need of working capital and help them create economic development and growth across their businesses.