Progcap, a business-to-Business (B2B) lending platform has raised $40 mn as a part of its Series C funding round from Creation Investments and Tiger Global.
The round also saw participation from Google and its existing investor Sequoia Capital India.
The fundraising value is $600 million, more than three times its previous valuation of $200 million.
With this round, it raised a total of $120 million in funding so far.
The company plans to use the funds to support its expansion and accelerate product development.
The New Delhi-based Progcap was founded in 2017 by Pallavi Shrivastava and Himanshu Chandra, It provides fast, flexible and collateral-free loans to small businesses in low-lying Indian cities, where retailers typically face challenges in accessing working capital.
“We are delighted that our existing investors have continued to deepen their conviction in Progcap, and thrilled that Google has joined us on this journey,” said, PallaviShrivastava, Co-founder, Progcap.
The company has so far disbursed $1 billion in loans, growing 4x annually.
The fintech startup works with over 700,000 SMBs and expects to reach over one million users by the end of 2022.
“We’re delighted to invest once again behind the Progcap team as it expands its product offering and further serves last-mile retailers in India,” said, Tyler Day, Partner, Creation Investments.
In October 2021, Progcap had raised $30 million in a Series C round led by Tiger Global Management and Creation Investments.
Founded in 2017, Progcap envisions broadening financial opportunities for micro, small and medium businesses in the last mile.
Working at the intersection of software and financial services, their aim is to be the first full-stack retailer-focused digital bank that digitizes, automates and eases capital movement across the supply chain to SMBs that have remained excluded from the formal financial ecosystem. In a very short span of time, they have built one of the most capital-efficient fintech businesses with strong growth and outstanding portfolio quality. Over the next two years, we aim to impact over 5 million SMBs. With their array of innovative and specialised fintech products, they aspire to transform the ‘Fintech for Retailers’ scenario for the USD 800 billion-worth Indian Retail Industry.