Progcap Raises $30 Mn Series C Funding From Tiger Global And Creation Investments
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, the platform in corporate-led last mile financing solutions in India, on Monday announced that it raised $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.
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.
“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,” shared Pallavi Shrivastava and Himanshu Chandra, co-founders, Progcap, in a joint statement.
Progcap has raised $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 platform said.
“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.”
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 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 per cent of their sprawling sub-dealer networks.
“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,” noted Tyler Day, partner, 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.”
Today, Progcap’s platform is tapped by over 60 corporates and 450,000 retailers. The company has disbursed ~INR 2500 crore to these networks on the back of its unique supply chain-driven business model and its award-winning risk scoring engine.
"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 the 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, GrowX Ventures.
Progcap aims to reach $1 billion in disbursals by March 2022.