Progcap, a fintech startup, announced Monday that it had raised $25 million in a Series B round led by Tiger Global and existing investor Sequoia Capital India. The New Delhi-based startup provides financing solutions for last-mile retailers.
The funds will be used to expand the company’s services and footprint in existing geographies. Additionally, the capital will be used to expand the team, strengthen technology differentiation, and diversify its product offerings, all of which will help the company achieve its vision of building a full-stack digital platform for last-mile retailers.
In February 2021, Progcap raised approximately $1.4 million in debt financing led by Stride Ventures. It raised $5 million in a Series A round in 2019. Progcap, founded by Pallavi Shrivastava and Himanshu Chandra, claims to have reached 300,000 retailers and disbursed Rs. 1,500 crore in loans for its multi-tier supply chain product.
The company, which operates at the intersection of software and financial services, stated that it aspires to be the first full-stack digital bank focused on retailers that enables capital flow across the supply chain to underserved retailers. By the end of 2023, Progcap hopes to have impacted more than 5 million businesses.
“Progcap has created a one-of-a-kind product to meet the working capital needs of small Indian retailers who account for a sizable portion of India’s $800 billion retail market. As India’s supply chains become more formalised through the implementation of the goods and services tax, the company will play a critical role in meeting the financial needs of such retailers. Progcap has scaled the business with exceptional credit quality and capital efficiency since Sequoia Capital India’s Series A investment, and the team is excited to further strengthen the partnership with this financing,” said Ashish Agrawal, principal, Sequoia Capital India.
“The Progcap team specialises in assisting small and medium-sized businesses in obtaining financing. We believe Progcap has an exciting future ahead of them as they continue to innovate in this underserved market,” said Tiger Global partner Scott Shleifer. Tiger Global, headquartered in New York, has invested in a number of Seqouia-backed startups in the country this year, including job platform Apna ($70 million), community platform Kutumb ($26 million), and online investment platform Groww ($83 million).
“We are thrilled that Sequoia Capital India has increased its investment in Progcap and that Tiger Global has joined us on our journey. The continued trust placed in us by our customers, partners, and investors is a testament to our teams’ unwavering efforts. We are committed to continuing our efforts to build India’s largest digital banking platform for last-mile retailers,” the founders of Progcap stated.
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