Progcap raises $25 million in Series B funding

CHENNAI: Retail financing startup Progcap has raised $25 million in equity in a Series B investment round led by Tiger Global and existing investor Sequoia Capital India.
The company will deploy these funds to expand presence across existing geographies, to scale up the team, strengthen the technology differentiation and diversify into new product offerings in its vision to build a full stack digital platform for last mile retailers.
Founded by Pallavi Shrivastava and Himanshu Chandra, Progcap has scaled to 300,000 retailers across 50 corporates and disbursed over Rs 1,500 crore of loans on its platform.
Progcap aims to be a full stack retailer-focused digital bank which facilitates capital across the supply chain to underserved retailers. The company has a target to impact over five million enterprises by the end of 2023.
“We are excited to have Sequoia Capital India double down on Progcap and thrilled to have Tiger Global join us in our journey. The continued faith that our customers, partners and investors have put in us is a testament to our teams’ unrelenting efforts," Progcap founders said.
“We are thrilled to partner with the Progcap team as they help small and mid-size businesses get access to financing. We believe Progcap has an exciting path ahead as they continue to innovate in this underserved market," Scott Shleifer, Partner, Tiger Global said.
“As supply chains in India get formalized with GST, the company will play an important role in serving the financial needs of such retailers. Since Sequoia Capital India’s Series A investment, Progcap has scaled the business with exceptional credit quality and high capital efficiency, the team is excited to strengthen the partnership with this financing," Ashish Agrawal, principal, Sequoia India, said.