Fintech startup Progcap, which facilitates debt capital for underserved micro and small businesses, has scooped up $30 million in a Series C financing round led by Tiger Global and Creation Investments. Existing investor Sequoia India also participated in the round.
The company will use the fresh capital to accelerate building a broader and deeper supply chain banking platform for its merchants and corporate network in India. The company claimed it was aiming to reach $1 billion in disbursals by March next year.
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.
In the last one year, Progcap claimed it has grown its monthly disbursal volume by 400% and expanded business operations across 10 industries working alongside leading corporates in these industries. It said that some of its largest clients are using its service to finance close to 30% of their sub-dealer networks.
The company claimed that its platform is used by more than 60 corporates and over 4 lakh retailers and that it has so far disbursed close to Rs 2,500 crore to these networks.
In June, Progcap had raised $25 million as part of its Series B investment led by Tiger Global and existing investor Sequoia Capital India. Before that, it had raised around $1.4 million in debt financing led by Stride Ventures in February 2021.
When Tiger Global had first cut a cheque to the company in June, it marked the New York-based investment fund place a bet in a company backed by Sequoia. Apart from Progcap, in 2021 so far, Tiger has invested in the likes of fintech BharatPe, edtech platform Classplus, social community enabler Kutumb and professional networking platform Apna — all Sequoia portfolio companies.
In fact, Tiger Global has invested in several Sequoia-backed companies in the last few months which include Moglix, Groww, CRED, Innovaccer, GoMechanic, Plum and Coinswitch Kuber.