Progcap, a company focused on corporate-led “last mile” retailer financing solutions for Indian markets, has acquired $25 million in equity capital as part of its Series B round that was led by Tiger Global along with participation from existing investor, Sequoia Capital India.
Progcap says it will use the proceeds from the investment round to improve its services while also expanding the brand’s presence across supported regions. The company’s management noted that they will be using the funding to hire new team members, work on their technology differentiation strategy while diversifying into new product offerings. This will be done to strengthen the firm’s vision of developing a full-stack digital platform for last mile retailers.
Established by Pallavi Shrivastava and Himanshu Chandra, Progcap has managed to scale its services to around 300,000 retailers across 50 corporates. The company reports disbursing more than INR 1500 crore of loans via its uniquely designed product for India‘s multi-tiered supply chains.
While working at the intersection of software and financial services, Progcap says it plans to become the first full-stack retailer that’s focused on digital banking. The company wants to enable capital flow across the supply chain to underserved retailers based in cities across India.
Progcap says that it plans to make a positive impact on more than 5 million enterprises by the end of 2023.
Ashish Agrawal, Principal, Sequoia India, stated:
“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.”
Scott Shleifer, Partner at Tiger Global, remarked:
“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.”
The company founders added:
“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.”