Progcap, a New-Delhi based Business-to-Business (B2B) lending platform providing corporate last mile financing solutions, has raised $40 million in an extension of its Series C funding round. Existing investors Tiger Global Management and new investor Creation Investments led the round, which also saw participation from Sequoia Capital India and Google, which joined in new.
The SME-focused Fintech startup has raised $55 million in total in the last three months. It is positioned as the most prominent fintech in India’s corporate-led retailer financing space. Last year, the company raised $30 million in the first tranche of its Series C round, led by Tiger Global Management and Creation Investments.
Progcap has onboarded several prominent leaders in the last three months to reach $1 billion in disbursals by March 2023. The company will use the new funds to augment its supply chain banking platforms for its merchants and support its expansion within the corporate network in India.
“We are looking to expand our footprint to more geographies that we will be identifying, and apart from that, we are working on developing our app that helps digitize our clients’ day-to-day finances. India is a large market, and the company will venture into other geographies in the future,” said Co-founder Pallavi Shrivastava.
Progcap plugging the B2B credit gap
Pallavi Shrivastava and Himanshu Chandra founded the B2B lending platform to avail collateral-free working capital to small and medium-sized businesses and retailers in India. In the last year, the startup has grown its monthly loan disbursal volume by 400 percent and expanded business operations across ten industries working alongside leading corporations.
Currently, the B2B lending platform is tapped by over 60 corporations and 450,000 retailers. The company earns most of its revenue from retail lending, while other segments like manufacturing form the rest. The company has disbursed INR 2500 crore to these networks on the back of its unique supply chain-driven business model and its award-winning risk scoring engine.
“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 organization, our broader mission is to be an end-to-end service provider for all retailer transactions,” said Himanshu Chandra.