B2B lending platform Progcap raises $40 million in funding
Business-to-Business (B2B) lending platform Progcap has raised $40 million, in an extension of its Series C funding round. Existing backers Creation Investments, Tiger Global Management and Sequoia Capital led the round, with Google joining in as a new investor. The startup said it is valued at around $600 million.
The company raised $30 million in the first tranche of its Series C round, led by Tiger Global Management and Creation Investments, last year. Progcap has raised around $120 million so far. The New Delhi-based company plans to use the funds to support its expansion and accelerate product development, it said in a statement
“We are looking to expand our footprint to more geographies that we will be identifying and apart from that we are working on developing our app that helps to digitise our clients’ day-to-day finances,” cofounder Pallavi Shrivastava said. India is a large market and the company will venture into other geographies in future, she added.
Founded in 2017 by Shrivastava and Himanshu Chandra, the startup provides collateral-free working capital to small and medium-sized businesses (SMBs) and retailers in India. “We are also working on product expansion and tapping into some newer segments like serving businesses in electrical and electronics and lending for manufacturing as well,” Shrivastava said.
The fintech platform claims to have facilitated over Rs 6,500 crore in credit, working with over 700,000 SMBs. It said it had recorded annualised disbursals of $1 billion, which is growing by 4X year-on-year. “We are looking to disburse around Rs 1,000 crore of loans by August we are hitting close to $20 million of annualised revenue run rate (ARR),” Shrivastava said.
The company earns most of its revenue from the retail lending business, while other segments like manufacturing form the rest, said cofounder Chandra. The company is also evaluating acquisition opportunities.
“We are actively looking for some software providers and will be looking to acquire them, but (we have) yet to finalise any deals,” Chandra added.
The company raised $30 million in the first tranche of its Series C round, led by Tiger Global Management and Creation Investments, last year. Progcap has raised around $120 million so far. The New Delhi-based company plans to use the funds to support its expansion and accelerate product development, it said in a statement
“We are looking to expand our footprint to more geographies that we will be identifying and apart from that we are working on developing our app that helps to digitise our clients’ day-to-day finances,” cofounder Pallavi Shrivastava said. India is a large market and the company will venture into other geographies in future, she added.
Founded in 2017 by Shrivastava and Himanshu Chandra, the startup provides collateral-free working capital to small and medium-sized businesses (SMBs) and retailers in India. “We are also working on product expansion and tapping into some newer segments like serving businesses in electrical and electronics and lending for manufacturing as well,” Shrivastava said.
The fintech platform claims to have facilitated over Rs 6,500 crore in credit, working with over 700,000 SMBs. It said it had recorded annualised disbursals of $1 billion, which is growing by 4X year-on-year. “We are looking to disburse around Rs 1,000 crore of loans by August we are hitting close to $20 million of annualised revenue run rate (ARR),” Shrivastava said.
The company earns most of its revenue from the retail lending business, while other segments like manufacturing form the rest, said cofounder Chandra. The company is also evaluating acquisition opportunities.
“We are actively looking for some software providers and will be looking to acquire them, but (we have) yet to finalise any deals,” Chandra added.
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