[Funding alert] Fintech startup Progcap grabs $30M Series C investment from Tiger Global, others
Fintech startupon Monday raised $30 million in Series C round from existing investors Tiger Global Management and Creation Investments. Sequoia Capital India — which had led the last two funding rounds for Progcap — also participated in this financing.
Progcap has raised $55 million in total in the last three months.
The startup will use the capital to build a broader and deeper supply chain banking platform for its merchants and corporate network in India. Progcap aims to reach $1 billion in disbursals by March 2022.
Pallavi and Himanshu
Speaking on the fundraise, co-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.”
In the past three months, Progcap has onboarded several prominent leaders to drive its business growth, such as Abhinav Singh (ex-Associate Partner, McKinsey & Co), who has joined as Chief Growth Officer, and Ashish Gupta (ex-CTO, Policy Bazaar), who is now leading tech and product functions for the startup.
“We are excited to double down and continue backing the Progcap team,” said Alex Cook, Partner, Tiger Global, adding, “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 one year, Progcap has grown its monthly disbursal volume by 400 percent and expanded business operations across 10 industries.
“We are delighted to join Sequoia Capital India and Tiger Global Management in helping Progcap revolutionise 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, Creation Investments.
At present, Progcap’s platform is tapped by over 60 corporates and 450,000 retailers to finance close to 30 percent of their sprawling sub-dealer networks. The startup has disbursed Rs 2,500 crore to these networks on the back of its supply chain-driven business model and risk scoring engine.
"During the last couple of years, we have had the privilege of witnessing Pallavi and Himanshu build Progcap into a transformational force and reshape the supply chain finance business in India. They have demonstrated their commitment to understanding the unique needs of retailers and serving them flawlessly by creating robust and scalable solutions,” added Manu Rihkye, Partner at GrowX Ventures.
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