Indian-based startup Progcap has closed a Series C round, receiving $30 million in the process. The latest round means that the fintech has now received a total of $55 million in funding in the last three months after it raised $25 million as a part of its Series B round led by existing investors Sequoia India and Tiger Global.
Sequoia Capital India, a lead investor in both funding rounds (Series A and B) for Progcap, was also part of the latest round. Still, existing investors Tiger Global Management and new investor Creation Investments took charge of this round.
Speaking on the latest development, Progcap founders Pallavi Shrivastava and Himanshu Chandra, said in a joint statement, “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. 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." Alex Cook, partner, Tiger Global.
“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.
Launched four years ago, Progcarp's core product revolves around providing access to flexible collateral-free working capital to small and mid-size businesses and retailers in India. The startup claims that it has expanded business operations across ten industries working alongside corporates to help offer finance to their partners in the last year. According to Livemint, 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.
Progcap has been on a hiring spree lately, poaching top executives in the last three months. 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.
Following the close of this round, Progcap plans to 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.
India in focus
GDP: $2.623 trillion in 2020 compared to $2.871 trillion in 2019
Population: 1.38 billion in 2020 compared to 1.366 billion in 2019
GDP per capita: $1,900 in 2020 compared to $2,100 in 2019