Progcap, a fintech company that aims to revolutionize the path of providing financial opportunities to small and mid-size businesses (SMBs) in the last mile, has raised $30Mn in Series C funding led by existing investor, Tiger Global Management and Creation Investments.
The firm also saw participation from Sequoia Capital India, which led the last two funding rounds for Progcap.
The Indian economy is dominated by small and medium scale businesses, most of which are still unregulated and suffering from cash flow problems. Progcap allows these businesses to get access to last mile, easy capital through specialized financing technology products that digitize, automate and ease capital movement across the supply chain.
The company claims to have successfully plugged the credit gap in India backed by its technology and a seamless supply chain evaluation for credit assessment.
Moreover, the solution is custom fitted, which means that every business gets flexible, customized capital that matches its own growth requirements. Last but not least, it also provides businesses a host of other technology solutions to help them increase their profitability, manage cash flows and advance towards a higher growth trajectory.
In just a few years, Progcap has managed to grow at a tremendous rate, and has already provided last-mile credit solutions of over $300 Mn, working with over 450,000 SMBs. Its platform is tapped by over 60 corporates and 450K retailers, and monthly disbursal volume has gone up by 400% in the last one year.
Over the last 3 months, the startup has raised about $55Mn, and is now “firmly positioned as the largest fintech in the corporate-led retailer financing space in India,” according to a statement.
It plans to use this capital to accelerate its vision of building a broader and deeper supply chain banking platform for its merchants and corporate network in India. Progcap aims to reach US$1 billion in disbursals by March ’22.
Speaking on the fundraise, the founders, Ms. Pallavi Shrivastava and Mr. Himanshu Chandra said, “We are elated to have our existing investors Tiger Global and Sequoia Capital India entrust their faith in us yet again as we welcome Creation Investments to join us in our journey. The recent funding round will help us allocate resources toward our aspiration to become the largest digital bank for small retailers. While we are becoming relevant to many large corporate clients, we have only scratched the surface of India’s vast retailer market. As an organization, our broader mission is to be an end-to-end service provider for all retailer transactions.”
