Progcap Closes $30 mln Series C Round to Get Small Businesses Off the Ground

Progcap, a last-mile financing startup based in India, has raised $30 million in Series C funding to support micro and small businesses by allowing them to find financial opportunities.

The round was co-led by existing investor Tiger Global Management and new investor Creation Investments. Sequoia Capital also participated in the round after having led the last 2 funding rounds. This capital brings the total funding raised by the startup to $55 million. Alex Cook, Partner at Tiger Global, said about the round:

“We are excited to double down and continue backing the Progcap team. We have been impressed with the strong customer feedback and believe Progcap will continue to attract retailers looking for a modern credit and banking platform.”

Progcap has been revolutionizing supply chain financing in India since its founding back in 2017, opening a lot of financial possibilities to entrepreneurs looking to start their businesses. The startup has seen the demand for its services more than quadruple over the last year, allowing it to expand its operation across 10 industries and expand its offering of products. Founders Pallavi Shrivastava and Himanshu Chandra referred to how the new capital will be invested by saying:

“We are elated to have our existing investors Tiger Global and Sequoia Capital India entrust their faith in us yet again as we welcome Creation Investments to join us in our journey. The recent funding round will help us allocate resources toward our aspiration to become the largest digital bank for small retailers. While we are becoming relevant to many large corporate clients, we have only scratched the surface of India’s vast retailer market. As an organization, our broader mission is to be an end-to-end service provider for all retailer transactions.”

India is quickly becoming one of the global hotspots for startups, reportedly raising over $6.5 billion in funding during the second quarter of 2021 and generating 11 unicorns. Now, Progcap is looking to allow entrepreneurs from underbanked semi-urban and rural areas to gain access to financial resources that allow them to run their own business, further improving the region’s competitiveness and innovation.