India: Fintech startup Progcap raises $25m from Tiger Global, Sequoia

India Gate. Photo: Abhidev Vaishnav/unsplash

Financial technology startup Progcap, which offers last-mile retailer financing solutions, on Monday said it has raised $25 million as part of its Series B investment round, led by Tiger Global and existing investor Sequoia Capital India.

The funds will be deployed to enhance its services and presence across existing geographies. The capital will also be used to scale up the team, strengthen technology differentiation and diversify into new product offerings to fortify its vision of building a full stack digital platform for last mile retailers.

Progcap, which was founded by Pallavi Shrivastava and Himanshu Chandra, has scaled to 300,000 retailers and disbursed Rs1,500 crore of loans on its product for multi-tiered supply chains.

Working at the intersection of software and financial services, Progcap said it aims to be the first full stack retailer-focused digital bank which enables capital flow across the supply chain to underserved retailers. The company is targeting to impact over 5 million enterprises by the end of 2023.

“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 formalised 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,” said Ashish Agrawal, principal, Sequoia India.

Scott Shleifer, partner, Tiger Global said, “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.”

Progcap’s founders in a statement said, “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.”

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.