Progcap raises US$30 million in Series C funding from Tiger Global and Creation Investments

DELHI, India, Oct. 4, 2021 /PRNewswire/ -- Progcap, the pioneer in corporate-led last mile financing solutions in India, has raised US$30 million in primary equity capital as part of its Series C investment round led by existing investor Tiger Global Management and new investor Creation Investments. Sequoia Capital India, which led the last two funding rounds for Progcap, also participated in this financing. Progcap has raised US$55 million in total since the last three months and is firmly positioned as the largest fintech in the corporate-led retailer financing space in India. This conviction is driven by Progcap's stellar growth despite COVID related challenges.

The company will use the new capital to accelerate its vision of building a broader and deeper supply chain banking platform for its merchants and corporate network in India. Progcap aims to reach US$1 billion in disbursals by March 2022. In the last three months, Progcap has onboarded several prominent leaders to drive its business growth such as Abhinav Singh, previously associate partner, McKinsey & Company, who has joined as chief growth officer and Ashish Gupta, previously CTO, Policy Bazaar, who is leading tech and product functions for the company.

In the last year, Progcap has grown its monthly loan disbursal volume by 400% and expanded business operations across 10 industries working alongside leading corporations. The company is consistently adding new products to its offering to provide an end-to-end service to its partners. Many of these large corporations are now using Progcap to finance ~30% of their sprawling sub-dealer networks.

Today, Progcap's platform is tapped by over 60 corporations and 450,000 retailers. The company has disbursed INR ~2500 CR to these networks on the back of its unique supply chain-driven business model and its award-winning risk scoring engine.

Speaking of the fundraise, founders Pallavi Shrivastava and Himanshu Chandra, said, "We are elated to have our existing investors Tiger Global and Sequoia Capital India entrust their faith in us yet again as we welcome Creation Investments to join us in our journey. The recent funding round will help us allocate resources toward our aspiration to become the largest digital bank for small retailers. While we are becoming relevant to many large corporate clients, we have only scratched the surface of India's vast retailer market. As an organization, our broader mission is to be an end-to-end service provider for all retailer transactions."

"We are excited to double down and continue backing the Progcap team," said Alex Cook, Partner, Tiger Global. "We have been impressed with the strong customer feedback and believe Progcap will continue to attract retailers looking for a modern credit and banking platform."

"We are delighted to join Sequoia Capital India and Tiger Global Management in helping Progcap revolutionize supply chain financing in India and provide access to affordable unsecured financing to India's micro-, small- and medium-sized enterprises. The company's exceptional growth and pristine portfolio quality, in a challenging macro environment, speak volumes about the Progcap team and its bespoke MSME Buy-Now Pay-Later product," said Tyler Day, partner of Creation Investments. "At Creation, our mission is to help provide financial inclusion for those with little or no access to it. This investment in Progcap aligns perfectly with our goals."

Progcap has successfully plugged the credit gap backed by its technology and a seamless supply chain evaluation for credit assessment. The company is empowering retailers by providing them access to flexible, customized capital that matches their business growth requirements along with a host of other technology solutions to help them increase their profitability, manage cash flows and advance towards a higher growth trajectory.

About Progcap

Progcap is an award-winning financial technology firm that aims to revolutionize the path of providing financial opportunities to small and mid-size businesses (SMBs) in the last mile through specialized financing technology products that digitize, automate and ease capital movement across the supply chain.

Founded by Pallavi Shrivastava and Himanshu Chandra with a mission to empower promising small businesses to progress without financial obstacles. Progcap has already provided last-mile credit solutions of over $300 Mn, working with over 450,000 SMBs through its industry-first, retailer financing platform, with strong growth and outstanding portfolio quality.

The company is backed by Sequoia Capital India, Tiger Global, GrowX, Creation Investments, Axis Capital and other well-known investors.

SOURCE Creation Investments Capital Management, LLC