The fintech firm raised $25 million as part of Series B investment round
Progcap raised around $1.4 mn in debt financing led by Stride Ventures in February 2021
Fintech startup Progcap on Monday said it has raised $25 million as part of its Series B investment round led by Tiger Global and existing investor Sequoia Capital India. The New Delhi-based startup offers last-mile retailer financing solutions.
The funds will be deployed to enhance its services and presence across existing geographies. The firm will also use the capital to scale up the team, strengthen technology differentiation, and diversify into new product offerings to fortify its vision of building a full-stack digital platform for last-mile retailers.
Progcap had raised around $1.4 million in debt financing led by Stride Ventures in February 2021. In 2019, it raised $5 million in a Series A round.
Progcap, which was founded by Pallavi Shrivastava and Himanshu Chandra, says it now reaches 300,000 retailers and has disbursed ₹1,500 crore of loans on its product for multi-tiered supply chains.
The company, which works at the intersection of software and financial services, said it aims to be the first full-stack retailer-focused digital bank that enables capital flow across the supply chain to underserved retailers. Progcap aims to impact more than 5 million enterprises by the end of 2023.
“Progcap has built a unique product to cater to the working capital needs of small Indian retailers who serve much of India’s $800 billion retail market. As supply chains in India get formalized with goods and services tax, the company will play an important role in serving the financial needs of such retailers. Since Sequoia Capital India’s Series A investment, Progcap has scaled up the business with exceptional credit quality and high capital efficiency and the team is excited to strengthen the partnership with this financing," said Ashish Agrawal, principal, Sequoia India.
“The Progcap team helps small and mid-size businesses get access to financing. We believe Progcap has an exciting path ahead as they continue to innovate in this underserved market," said Scott Shleifer, partner, Tiger Global.
New York-based Tiger Global has invested in multiple existing Seqouia-backed startups in the country this year, including jobs platform Apna ($70 million), community platform Kutumb ($26 million) and online investment platform Groww ($83 million) among others.
“We are excited to have Sequoia Capital India double down on Progcap and thrilled to have Tiger Global join us in our journey. The continued faith that our customers, partners, and investors have put in us is a testament to our teams’ unrelenting efforts. We are committed to continue our efforts in building India’s largest digital banking platform for last mile retailers," Progcap’s founders said.
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