Retailer-focused financing provider Progcap has raised $30 million in primary equity capital as part of its Series C investment round led by Tiger Global Management and Creation Investments.
The financing round also saw the participation of Sequoia Capital India which led the last two rounds of funding for Progcap. The latest round came after three months of start-up raising $25 million as a part of its Series B round led by existing investors Sequoia India and Tiger Global.
The infused capital will be utilised to broaden and deepen the supply chain banking platform for its merchants and corporate network in India. The platform further aims to reach $1 billion in disbursals by March 2022.
In the last three months, the fintech startup has on-boarded several prominent leaders to bolster its leadership teams, such as Abhinav Singh (ex-Associate Partner, McKinsey & Co), who has joined as Chief Growth Officer, and Ashish Gupta (ex-CTO, Policy Bazaar), who is now leading tech and product functions for the startup.
Co-founders, Pallavi Shrivastava and Himanshu Chandra, said, “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.”
Alex Cook, Partner, Tiger Global 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.”
Tyler Day, Partner, Creation Investments said, “We are delighted to join Sequoia Capital India and Tiger Global Management in helping Progcap revolutionise supply chain financing in India and provide access to affordable unsecured financing to India’s micro, small, and medium-sized enterprises. 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,”.
Manu Rihkye, Partner at GrowX Ventures said, “During the last couple of years, we have had the privilege of witnessing Pallavi and Himanshu build Progcap into a transformational force and reshape the supply chain finance business in India. They have demonstrated their commitment to understanding the unique needs of retailers and serving them flawlessly by creating robust and scalable solutions,”.
Last year, the platform has expanded its business operations across 10 industries and has witnessed a month-on-month disbursal volume growth of 400 per cent.
Currently, Progcap is tapped by more than 60 corporates and 450,000 retailers to fund approximately 30 per cent of their sprawling sub-dealer networks. The startup has disbursed close to INR 2,500 crore to these networks.