Progcap, which provides financing solutions for last mile retailers, on Monday said it has raised $25 million (about Rs 185.3 crore) in equity capital, led by Tiger Global and existing investor, Sequoia Capital India.
The company will deploy the proceeds from the Series B round to enhance its services and expand the brand's presence across existing geographies, a statement said.
The firm will also use the capital to scale up the team, strengthen the technology differentiation and diversify into new product offerings to fortify its vision of building a full stack digital platform for last mile retailers, it added.
Founded by Pallavi Shrivastava and Himanshu Chandra, Progcap has scaled to 3 lakh retailers across 50 corporates and disbursed over Rs 1,500 crore in loans. The company is backed by Tiger Global, Sequoia Capital India, GrowX, Axis Capital and other investors.
"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," Progcap co-founder Pallavi Shrivastava said.
Progcap aims to be the first full stack retailer-focused digital bank which enables capital flow across the supply chain to underserved retailers. It aims 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," Ashish Agrawal, Principal at Sequoia India, said.
Scott Shleifer, Partner at Tiger Global, said Progcap has an exciting path ahead as the company continues to innovate in this underserved market.