Fintech firm Progcap on Monday said it has raised USD 30 million (about Rs 222.6 crore) in primary equity capital led by existing investor, Tiger Global Management and Creation Investments. Sequoia Capital India, which led the last two funding rounds for Progcap, also participated in the series C investment round, a statement said.
Progcap, which has raised USD 55 million in total since the last three months, will use the new capital to accelerate its vision of building a broader and deeper supply chain banking platform for its merchants and corporate network in India, it added. Founded in 2017, by Pallavi Shrivastava and Himanshu Chandra, the company is backed by Sequoia Capital India, Tiger Global, GrowX, Creation Investments, Axis Capital and others.
It helps micro and small enterprises in the last mile by providing them access to customised financing solutions and digitising their supply chain. Many large corporates are now using Progcap to finance about 30 per cent of their sub-dealer networks, as per the statement. The company aims to reach USD 1 billion in disbursals by March 2022, the statement added. In the last one year, Progcap has grown its monthly disbursal volume by 400 per cent and expanded business operations across 10 industries working alongside leading corporates in these industries, the company said.
Progcap’s platform is used by over 60 corporates and 4.5 lakh retailers. The company has disbursed about Rs 2,500 crore to these networks on the back of its unique supply chain-driven business model and its risk scoring engine. “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,” Progcap co-founder Pallavi Shrivastava said.
As an organisation, the company’s broader mission is to be an end-to-end service provider for all retailer transactions, Progcap co-founder Himanshu Chandra added.