Tiger Global, Sequoia lead $25 mn round in financing startup Progcap

Retailer-focused financing startup Progcap has raised $25 million as part of its Series B investment round led by Tiger Global and existing investor, Sequoia Capital India. In 2019, it raised $5 million in a Series A round.

The company will deploy the funds to enhance its services and expand the brand's presence across existing geographies. The firm will also use the capital to scale up the team, strengthen the technology differentiation and diversify into new product offerings, building a full stack digital platform for last mile retailers.

“We are thrilled to partner with the Progcap team as they help small and mid-size businesses get access to financing. We believe Progcap has an exciting path ahead as they continue to innovate in this underserved market,” said Scott Shleifer, partner, Tiger Global. In the below $50 million bracket, Tiger Global has made four bets so far this year including Locus, Plum, Koo and Progcap now.

Founded by Pallavi Shrivastava and Himanshu Chandra, Progcap has over 300,000 retailers across 50 corporates and has disbursed over Rs 1,500 crore of loans so far. It aims to be the first full stack retailer focused digital bank, which enables capital flow across the supply chain to underserved retailers, aiming to impact over five million enterprises by the end of 2023.

“Progcap has built a unique product to cater to the working capital needs of small Indian retailers who serve much of India’s $800 billion retail market. As supply chains in India get formalized with GST, the company will play an important role in serving the financial needs of such retailers,” said Ashish Agrawal, principal, Sequoia India, which has doubled down its backing on the company in this round after Series A.