[Funding alert] Sequoia-backed fintech startup Progcap raises Rs 10 Cr in debt from Stride Ventures
Fintech startup Progcap aims to use the funding to increase its AUM and increase its penetration among retailers across the country.
Tuesday February 09, 2021,
2 min Read
Venture debt fund Stride Ventures has led a debt funding round of Rs 10 crore in Progcap, a New Delhi-based fintech player providing access to collateral-free working capital to retailers.
This is Stride Ventures’ 14th investment from its maiden fund and second investment in the fintech space.
Pallavi Shrivastava and Himanshu Chandra, Co-founders of Progcap, said,
“We are excited to partner with Stride Ventures as we continue to scale the business. While Progcap is well capitalised, it is Stride team’s deep expertise in the banking ecosystem that we are looking forward to tap into to help accelerate our growth. We have just crossed $100 million in disbursals and expect to reach $1 billion GMV by March 2022."
Progcap, which claims to have scaled up over 5X post-COVID, aims to use the funding to increase its AUM and increase the penetration amongst retailers across the country.
Further, the company will look to strengthen its ties with banks and corporates by leveraging Stride’s network. The company has over two lakh retailers on its platform and claims to have partnered with some of the largest brands in the country.
Founded in 2017, Progcap provides access to collateral-free working capital to underbanked, semi-urban, and rural retailers in Tier-II, III, and IV areas, where retailers typically face challenges in accessing capital for their businesses.
“India has a complex supply chain. However, the solutions for small dealers and retailers are limited. Accessibility to credit will enable them to be at the forefront of India’s consumption story and Progcap is well positioned to drive this change,” added Ishpreet Gandhi, Founder and Managing Partner, Stride Ventures.
Since its inception, Stride Ventures has focused on investing in market leaders across sectors.
It launched its maiden fund in 2019 and plans to invest in 25-30 startups through Stride Venture India Fund I.
Edited by Saheli Sen Gupta