Tiger Global and others invest $30 million in Progcap.
Progcap, a fintech firm, acquired $30 million in a Series C investment from Tiger Global Management and Creation Investments on Monday. Sequoia Capital India, which had led Progcap’s previous two capital rounds, was also involved in this round.
In the previous three months, Progcap has raised a total of $55 million.
The funds will be used to expand and deepen the startup’s supply chain banking platform for its merchants and corporate network in India. By March 2022, Progcap hopes to have disbursed $1 billion.
Pallavi Shrivastava and Himanshu Chandra, co-founders, spoke about the fundraising, saying,
“The current fundraising round will enable us to focus our resources on our goal of becoming the leading digital bank for small businesses. While we are gaining traction with a number of major corporate clients, we have just begun to scratch the surface of India’s enormous retail sector. Our overall goal as a company is to be an end-to-end service provider for all retail transactions.”
Abhinav Singh (ex-Associate Partner, McKinsey & Co), who has joined as Chief Development Officer, and Ashish Gupta (ex-CTO, Policy Bazaar), who is now heading the startup’s tech and product divisions, have both joined Progcap in the last three months to help drive the company’s growth.
“We are thrilled to double down and continue funding the Progcap team,” said Alex Cook, Partner, Tiger Global. “We have been impressed with the positive customer response and believe Progcap will continue to attract merchants looking for a contemporary credit and banking platform,” he said.
Progcap increased its monthly disbursal volume by 400% in a year and expanded its commercial activities to ten industries.
“We are excited to join Sequoia Capital India and Tiger Global Management in assisting Progcap in revolutionizing supply chain finance in India and providing inexpensive unsecured lending to India’s micro, small, and medium-sized businesses. In a tough macro climate, the company’s remarkable growth and impeccable portfolio quality speak eloquently about the Progcap team and their unique MSME Buy-Now Pay-Later product,” stated Tyler Day, Partner, Creation Investments.
Progcap’s technology is being used by over 60 corporations and 450,000 retailers to fund almost 30% of their vast sub-dealer networks. On the basis of its supply chain-driven business model and risk assessment system, the firm has disbursed Rs 2,500 crore to these networks.
“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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