Fintech startup Progcap, which facilitates debt capital for underserved micro and small businesses, has scooped up $25 million as part of its Series B investment led by Tiger Global and existing investor Sequoia Capital India.
In a statement on Monday, the company said that it will utilise these funds to expand its brand presence across existing geographies, scale up its team and diversify into new product offerings.
Founded by Pallavi Shrivastava and Himanshu Chandra in 2017, the fintech company provides the under-banked, semi-urban and rural retailers in India access to flexible, collateral-free working capital.
Progcap said it has scaled to 3 lakh retailers across 50 corporates and disbursed over Rs 1500 crore of loans. The company said it was aiming to cover over 5 million enterprises by the end of 2023.
Before this, Progcap had raised around $1.4 million in debt financing led by Stride Ventures in February 2021.
This investment marks Tiger Global backing yet another existing Sequoia-backed company in India. In 2021 so far, the New York-based fund has invested in the likes of social community enabler Kutumb ($26 million) and professional networking platform Apna ($70 million) — both Sequoia portfolio companies.
In fact, Tiger Global has invested in 10 Sequoia-backed companies in the last six months which include Moglix, Groww, CRED, Innovaccer, GoMechanic, Plum and Coinswitch Kuber.
And according to Entrackr’s sources, Tiger Global is going to back two more Sequoia-backed companies in edtech startup Classplus and fintech company BharatPe.