The funding round comes after Progcap secured $25 million in a Series B funding round led by Sequoia Capital and Tiger Global Management three months ago. In the last three months, the startup has raised $55 million in funding and is positioned as the largest FinTech startup in the corporate-led retailer financing segment in the country.
Progcap will be using this new funding to build its supply chain banking platform for its corporate network and merchants in the country. By March 2022, the startup aims to reach $1 billion in disbursals.
According to Progcap founders, Pallavi Shrivastava and Himanshu Chandra, “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 organisation, our broader mission is to be an end-to-end service provider for all retailer transactions.”
Progcap in the last one year has grown its monthly disbursals volume by 400% and has expanded its business operations across ten industries while working along with leading corporates in these industries. The company has been adding new products consistently to its product suite to offer end-to-end service to its partners. Its platform is tapped by more than 60 corporates and about 450,000 retailers.
Alex Cook, Partner, Tiger Global said, “We have been impressed with the strong customer feedback and believe Progcap will continue to attract retailers looking for a modern credit and banking platform.”
“The company’s exceptional growth and pristine portfolio quality, in a challenging macro environment, speak volumes about the Progcap team and its bespoke MSME Buy-Now Pay-Later product. At Creation, our mission is to help provide financial inclusion for those with little or no access to it. This investment in Progcap aligns perfectly with our goals,” said Tyler Day, partner, Creation Investments.
Founded in 2017, Progcap offers financial solutions for micro and small businesses. The startup leverages a mix of technology and its unique delivery model to underwrite credit. Thus offering under-banked SMBs in rural and semi-urban India accesses to collateral-free, flexible working capital.
Progcap also provides finance and supply-chain based solutions for small and micro enterprises.