Progcap, the pioneer in corporate-led last mile financing solutions in India, has raised USD 30 million in primary equity capital as part of its Series C investment round 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 this financing. Progcap has raised US$55 million in total since the last 3 months and is firmly positioned as the largest fintech in the corporate-led retailer financing space in India. This conviction is driven by Progcap’s stellar growth despite COVID related challenges. The company 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. Progcap aims to reach US$1 billion in disbursals by March ’22.
In the last 3 months, Progcap has onboarded several prominent leaders to drive its business growth such as Mr. Abhinav Singh (previously- Associate Partner, McKinsey & Co) who has joined as Chief growth Officer and Mr. Ashish Gupta (previously CTO Policy Bazaar) who is currently leading tech and product functions for the company.
In the last one year, Progcap has grown its monthly disbursal volume by 400% and expanded business operations across 10 industries working alongside leading corporates in these industries. The company is consistently adding new products to its offering to provide an end-to-end service to its partners. Many of these large corporates are now using Progcap to finance ~30% of their sprawling sub-dealer networks. Today, Progcap’s platform is tapped by over 60 corporates and 450K retailers. The company has disbursed INR ~2500 cr to these networks on the back of its unique supply chain-driven business model and its award-winning risk scoring engine.
Speaking on the fundraise, the founders, Ms. Pallavi Shrivastava and Mr. Himanshu Chandra said, “We are elated to have our existing investors Tiger Global and Sequoia Capital India entrust their faith in us yet again as we welcome Creation Investments to join us in our journey. 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.”
“We are excited to double down and continue backing the Progcap team,” said Alex Cook, Partner, Tiger Global. “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.”
“We are delighted to join Sequoia Capital India and Tiger Global Management in helping Progcap revolutionize 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,” said Tyler Day, partner of Creation Investments. “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.”
“During the last couple of years, we have had the privilege of witnessing Pallavi and Himanshu build Prograp into a transformational force and reshape the supply chain finance business in India. They have demonstrated their commitment towards understanding unique needs of retailers and serving them flawlessly by creating robust and scalable solutions. We are excited to see commitment from marquee VCs to support Progcap achieve its long term objective of addressing all banking needs of the retailer and distributor segment,” added Manu Rihkye, Partner at GrowX Ventures.
Founded in 2017, Progcap has successfully plugged the credit gap backed by its technology and a seamless supply chain evaluation for credit assessment. The company is empowering retailers by providing them access to flexible, customized capital that matches their business growth requirements along with a host of other technology solutions to help them increase their profitability, manage cash flows and advance towards a higher growth trajectory.
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