Fintech firm Progcap, which does last mile retailer financing solutions has raised $25 million equity capital as part of its Series B investment round led by Tiger Global and existing investor, Sequoia Capital India.
The company said it will deploy these funds to enhance its services and expand the brand's presence across existing geographies. The firm will also use the capital to scale up the team, strengthen the technology differentiation and diversify into new product offerings to fortify its vision of building a full stack digital platform for last mile retailers. Founded by Pallavi Shrivastava and Himanshu Chandra, Progcap said it has scaled to 3,00,000 retailers across 50 corporates and disbursed over Rs 1,500 crore of loans.
It added that working at the intersection of software and financial services, it aims to be the first full stack retailer focused digital bank which enables capital flow across the supply chain to underserved retailers. The company is aiming to impact over five million enterprises by the end of 2023.
"Progcap has built a unique product to cater to the working capital needs of small Indian retailers who serve much of India's $800 billion retail market. 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." said Ashish Agrawal, Principal, Sequoia India.
Scott Shleifer, Partner, Tiger Global 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."
Commenting on the fundraise, the founders said, "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. We are committed to continue our efforts in building India's largest digital banking platform for last mile retailers."