Progcap, a New Delhi, India-based fintech startup, raised USD 30 million in a Series C round co-led by Tiger Global Management and Creation Investment on 4 October 2021.
Investors: Existing investor Tiger Global Management and new investor Creation Investments co-led the latest round of funding with participation from Sequoia Capital India.
The Objectives behind the funding: The company plans to deploy the current proceeds to broaden and deepen the supply chain banking platform for its merchants and corporate network in India. The startup targets to hit USD 1 billion in disbursal by March 2022.
About Progcap
Founded in 2016 by Pallavi Shrivastava and Himanshu Chandra, Progcap is an inclusive financing technology firm working to unlock the transformational impact of millions of micro and small enterprises in the last mile by providing them affordable, customized finance and digitizing their supply chains. The startup’s platform facilitates credit score creation for customers currently left out by the traditional financial institution.
What the Founder has to say:
“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,” said Progcap founders Pallavi Shrivastava and Himanshu Chandra in a joint statement.
What the Investors have to say:
“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,” said 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.
SME’s find it difficult to raise finance from banks and other institutions. They mainly rely on internal finance from family and friends to initially set up the company. MSME’s accounts for 45% of total industrial production and contributes to 37.54% of the country’s GDP. Around 15% of SMEs in India stated access to finance as a significant constraint to growth, and the World Bank estimates that the credit gap for MSMEs in India amounts to USD 230 billion. Progcap aims to reduce the gap by using a mix of technology and its unique delivery model to underwrite credit.
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