The round also saw participation from MV Nair, chairman of Credit Information Bureau (India) Ltd (CIBBIL), Sandeep Tandon, co-founder of Freecharge, along with existing investors GrowX Ventures Fund and Somak Ghosh.
Founded in 2017 by Pallavi Shrivastava and Himanshu Chandra, Progcap facilitates debt capital for underserved micro and small businesses in India.
“The capital infusion will help us strengthen our operations, build on our technological differentiation, and accelerate the pace of our pan-India expansion,” Progcap co-founder Pallavi Shrivastava said.
Progcap had previously raised a capital investment of over $1 million in April 2019 from early-stage investment firms GrowX Ventures and Contrarian Drishti, and angel investors Somak Ghosh and Abhishek Dalmia.
“India has multi-layered distribution chains where credit is an important enabler. Currently, only large distributors are able to get access to inventory financing through banks and other formal channels. With a well-designed product, Progcap is able to extend credit to smaller sub-dealers and retailers,” Ashish Agrawal, Principal, Sequoia Capital India Advisors said.