By Abhirami G

BENGALURU, Nov 3 (Reuters) - U.S. trade finance firm

Drip Capital plans to expand its operations in India as demand

for working capital grows from small and medium-sized Indian

exporters, hurt by punitive U.S. tariffs, CEO Pushkar Mukewar

said.

The Palo Alto-based firm, backed by investors including

Accel, Peak XV and Sumitomo Mitsui Banking Corp, raised $75

million in debt funding from Canadian lender TD Bank last week,

taking its total debt financing to over $500 million.

The U.S. imposed a 50% tariff on Indian goods in August,

resulting in uncertain order flows to the South Asian nation's

top export destination, prompting businesses across industries

from textiles to fisheries to scramble for buyers across Europe,

Africa and Asia.

The Indian government is yet to announce any financial or

credit support for affected exporters but has directed banks to

ease credit access for the sector.

Drip Capital has facilitated over $8 billion in trade

finance transactions to date, providing credit, working capital,

and smoothening payments for exporters, with 60-70% of its

portfolio originating from India.

SMEs' working capital needs have gone up in the past six

months due to U.S. President Donald Trump's tariffs on various

countries, Mukewar told Reuters, noting strong demand from

sectors such as agri-commodities and textiles.

Small and medium enterprises account for nearly half of

exports from India, which aims to reach $1 trillion in export

value this financial year.

Drip Capital facilitates about $2 billion in credit annually

and aims to grow that by 25% over the next year as exporters

look to diversify away from the U.S.

That's a trend that's set to continue long-term as relying

on a broader set of markets "is perhaps better for most,"

Mukewar said.