Decoding Google-backed Progcap’s Series C round and cap table

Progcap, a startup that facilitates debt capital for underserved micro and small businesses, scooped up $70 million in its Series C round across two tranches. The final tranche of $40 million came in late June in which Google also joined as a new investor.

Following this, Fintrackr has decoded the company's funding round break up, jump in valuation and current shareholding pattern.

During the first tranche in September 2021, Progcap had allotted 10 equity and 6712 Series C CCPS at an issue price of Rs 3,28,414 per share to raise Rs 220.76 crore or around $30 million, regulatory filing with the RoC shows.

Tiger Global was the lead investor with Rs 110.3 crore followed by Creation Investment and Sequoia Capital which participated with Rs 83.3 crore and Rs 22 crore respectively. As per Fintrackr’s estimates the company was valued at $212 million post allotment in September 2021.

Nine months later, the company received another tranche of Series C in June 2022 by allocating 3380 Series C1 CCPS at an issue price of Rs 9,09,976 per share- almost three times the price during the previous tranche-to raise Rs 306 crore or $40 million, separate regulatory filings show.

The Series C1 round was led by existing backer Creation Investment with Rs 116 crore while the new investor Google pumped in Rs 93 crore. Other backers such as Tiger and Sequoia joined Progcap’s recent round with Rs 77 crore each.

It's worth noting that the 177% jump in the company's share issue price in nine months for the same round, resulted in a 183% surge in its valuation to $600 million in Series C1 round from $212 million in Series C.

The company has raked in over $100 million to date.

Early backer Sequoia remains the largest stakeholder in Progcap with 31.38% followed by Tiger which holds 17%. Pallavi Shrivastava and Himanshu Chandra, promoters of the company, collectively hold 23.64% stake in the six-year-old startup.

Progcap is a fintech platform that digitizes supply chains and facilitates access to finance for last mile retailers. It claims to have facilitated over 6,500 crore of credit, working with over 700,000 SMBs through its retailer financing platform. It also claims to have recorded annualized disbursals of $1 billion, growing by 4 times year on year on the back of very strong unit economics.

Progcap’s improved unit economics was also evident from its FY21 financial performance where it narrowed down losses by 25.4% to Rs 5.42 crore from Rs 7.27 crore in FY20. During the period ending March 2021, its scale blew 7X to Rs 5.92 crore from Rs 85 lakh in FY20, as per its annual financial statements.