US-based Drip Capital Inc. has signed a Memorandum of Understanding (MoU) with the Authorities of Maharashtra to facilitate funding within the state and increase entry to commerce finance for export-oriented micro, small and medium enterprises (MSMEs).

The MoU was signed on the sidelines of the World Financial Discussion board Annual Assembly in Davos.

Below the settlement, Drip Capital has dedicated to disburse Rs 10,000 crore in collateral-free commerce finance to Maharashtra-based MSMEs over 5 years, from 2026 to 2031.

The funding is geared toward easing working capital constraints for exporters, serving to them scale cross-border commerce operations and take part extra actively in world provide chains.

The partnership comes towards the backdrop of a persistent financing hole for small companies. As per findings by the Small Industries Improvement Financial institution of India (SIDBI), India’s MSME sector faces a credit score hole of practically Rs 30 lakh crore, which continues to constrain the flexibility of micro, small and medium enterprises to increase operations and compete globally. Bridging this hole may unlock an extra Rs 9-10 lakh crore in export worth yearly, supporting India’s export-led progress agenda.

Commenting on the partnership, Pushkar Mukewar, Founder and CEO, Drip Capital, mentioned, “Our collaboration with Authorities of Maharashtra will foster monetary inclusivity and resilience amongst MSMEs. We purpose to empower native companies with entry to well timed, collateral-free finance and know-how options to drive financial progress, and world scale.”

Drip Capital mentioned it has facilitated greater than Rs 66,000 crore in commerce financing for over 11,000 companies thus far. The corporate operates a totally digital platform and makes use of automated threat evaluation instruments, which it says may help companies entry funding in days moderately than weeks or months. It additionally gives collateral-free financing, permitting exporters to boost funds with out pledging private property to fulfil giant orders.

The partnership can also be anticipated to help employment era, together with oblique employment via MSME provide chains, and allow exporters to make use of digital capabilities akin to data-driven underwriting, world purchaser verification, and threat evaluation to entry commerce finance.