Progcap raises $30 mn in Series C funding led by Tiger Global, Creation

Progcap, the corporate-led last mile financing facility provider in India, has 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.

Progcap has raised $55 million in total since the last three months and is positioned as the largest fintech in the corporate-led retailer financing space in India.

The founders, Pallavi Shrivastava and Himanshu Chandra said, “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 organisation, our broader mission is to be an end-to-end service provider for all retailer transactions.”

Progcap aims to reach $1 billion in disbursals by March 2022.

In the last three months, Progcap has onboarded several prominent leaders to drive its business growth such as Abhinav Singh (previously - associate partner, McKinsey & Co) who has joined as chief growth Officer and 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. Many of these large corporates are now using Progcap to finance nearly 30% of their sprawling sub-dealer networks.

Today, Progcap’s platform is tapped by over 60 corporates and 450K retailers. The company has disbursed Rs 2500 crore to these networks on the back of its unique supply chain-driven business model and its award-winning risk scoring engine.

“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 at Creation. Investments.

"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 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.