Progcap will use the new capital to broaden and deepen the supply chain banking platform for its merchants and corporate network in India
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Financing solutions startup, Progcap on Monday said it has raised $30 million in primary equity capital as part of its Series C investment round led by existing investor, Tiger Global Management and new investor Creation Investments.
Sequoia Capital India, which led the last two funding rounds for Progcap, also participated in this financing. The current round of funding comes just three months after the startup raised $25 million as a part of its Series B round led by existing investors Sequoia India and Tiger Global.
According to the company, it will use the new capital to broaden and deepen the supply chain banking platform for its merchants and corporate network in India. Progcap aims to reach $1 billion in disbursals by March 2022.
Four-year-old Progcap provides access to flexible collateral-free working capital to small and mid-size businesses and retailers in India.
“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," said Progcap founders Pallavi Shrivastava and Himanshu Chandra, in a joint statement.
In the last one year, Progcap claims to have expanded business operations across 10 industries working alongside corporates to help offer financing to their partners.
Large corporate partners are now using Progcap’s platform to provide financing to almost 30% of their sub-dealer networks, the company said.
“We are excited to double down and continue backing the Progcap team. 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," said Alex Cook, partner, Tiger Global.
Progcap’s platform has been tapped by over 60 corporates and has helped finance 450,000 retailers. The company has disbursed roughly ₹2500 crore to these networks.
“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 of Creation Investments.
In the last 3 months, Progcap has onboarded several senior executives to bolster its leadership team. Names include Abhinav Singh, previously associate partner, McKinsey & Co who joined the company as its chief growth officer. Ashish Gupta, who previously served as the chief technology officer of insurtech player PolicyBazaar currently leads tech and product functions for the company.
Other investors in Progcap include GrowX and Axis Capital among others.