Fintech startup Progcap, which helps small and mid-size businesses raise debt, has raised $25 million in a Series B funding led by Tiger Global Management and existing backer Sequoia Capital, the company said on June 21.
Founded in 2016 by Pallavi Shrivastava and Himanshu Chandra, Progcap lends to businesses which do not otherwise have no formal credit record or history. Progcap facilitates the loan while the actual lending is done by its partners-Muthoot Finance, Credit Saison and Star Finserv.
“We are excited to have Sequoia Capital India double down on Progcap and thrilled to have Tiger Global join us in our journey,” the founders said in a statement.
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, said Ashish Agarwal, Principal at Sequoia India.
“As supply chains in India get formalised with GST, the company will play an important role in serving the financial needs of such retailers,” Agarwal said.
Progcap said it would deploy the funds to enhance services and expand the brand’s presence across existing geographies. Progcap said it has covered 500 towns and 3,00,000 retailers, disbursing about Rs 1,500 crore in loans. It will also use the money to scale up the team, strengthen the technology differentiation and diversify into new product offerings.
“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,” the founders said.
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