Total amount raised
$150.6 Million
Latest funding date
10/1/2022
Location
Progcap has successfully raised significant funding over multiple rounds, attracting notable investors such as Google, Tiger Global, and Sequoia Capital India. The company focuses on providing financial services to underserved segments of the Indian retail economy, including specialized financing and technology products.
Keep reading to explore the intricacies of Progcap's fundraising journey and the investors backing this innovative platform.
What Is Progcap?
Progcap, officially known as Desiderata Impact Ventures Private Limited, is a fintech company founded in 2017. It is headquartered in New Delhi, India, and focuses on providing financial services to small and medium businesses (SMBs).
The company operates in the Enterprise, Finance, Financial Services, and FinTech industries. Progcap has a significant presence across India, serving over 800,000 retailers and operating in more than 500 cities. The company employs between 251 and 500 people.
While the founders' names are not explicitly mentioned, Pallavi Shrivastava is prominently featured and recognized in various awards, suggesting she is a key figure in the company.
How Much Funding Has Progcap Raised?
- Seed Round
- Amount Raised: $1,000,000
- Date: April 2019
- Lead Investors: growX ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart operations and develop initial financial products for small and medium businesses.
- Series A
- Amount Raised: $5,000,000
- Date: July 2019
- Lead Investors: Peak XV Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the company's reach and enhance its technology platform.
- Debt Financing
- Amount Raised: $1,370,000
- Date: February 2021
- Lead Investors: Stride Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support working capital needs and scale operations.
- Series B
- Amount Raised: $25,000,000
- Date: June 2021
- Lead Investors: Peak XV Partners, Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To further scale the business and enhance product offerings.
- Series C
- Amount Raised: $30,000,000
- Date: October 2021
- Lead Investors: Creation Investments Capital Management, LLC, Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To address the $300 billion credit gap in India's supply chain sector.
- Series C (Extended)
- Amount Raised: $40,000,000
- Date: June 2022
- Lead Investors: Creation Investments Capital Management, LLC, Tiger Global Management, Venture Catalysts
- Valuation at Round: $600,000,000
- Motivation Behind the Round: To build the future of supply chain finance and payments in India.
- Series C (Final)
- Amount Raised: $50,000,000
- Date: October 2022
- Lead Investors: Beams FinTech Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To continue addressing the credit gap and expand financial services to underserved segments.
Total Amount Raised: $152,370,000. Current Valuation: $600,000,000.
Key Investors
- Beams FinTech Fund
- Details: Beams FinTech Fund focuses on growth-stage startups in the financial services and technology sectors. It was founded by a group of experienced investors including Sagar Agarwal and Dr. Apoorva Ranjan Sharma.
- Investment Focus Areas: Financial services, technology sector, growth-stage startups
- Notable Investments: Not specified
- Creation Investments Capital Management, LLC
- Details: Creation Investments is a private equity firm that focuses on financial services and technology companies in emerging markets. They aim to provide financial inclusion and access to capital.
- Investment Focus Areas: Financial services, microfinance, FinTech
- Notable Investments: Not specified
- Tiger Global Management
- Details: Tiger Global Management is a global investment firm that invests in private and public companies. They are known for their significant investments in high-growth technology companies.
- Investment Focus Areas: Internet, software, consumer, financial technology
- Notable Investments: Facebook, LinkedIn, Flipkart
- Venture Catalysts
- Details: Venture Catalysts is an early-stage startup incubator and accelerator. They provide funding and mentorship to startups across various sectors.
- Investment Focus Areas: Early-stage startups across various sectors
- Notable Investments: Not specified
- Peak XV Partners
- Details: Peak XV Partners is a venture capital firm that invests in technology, consumer, and healthcare sectors. They focus on early to growth-stage companies.
- Investment Focus Areas: Technology, consumer, healthcare
- Notable Investments: Not specified
What's Next for Progcap?
Progcap stands at the cusp of a significant opportunity, aiming to bridge the $300 billion credit gap in India's supply chain sector. With the Indian fintech industry projected to reach $1.3 trillion by 2025, Progcap is well-positioned to capture a substantial share of this market, particularly in lending tech.
Future fundraising looks promising, given the strong backing from high-profile investors like Google, Tiger Global, and Sequoia Capital. This support will likely continue as Progcap scales its operations and expands its credit offerings to retail MSMEs across India.
However, challenges remain. Progcap must navigate regulatory requirements, manage lending risks, and compete with other fintech companies. Effective utilization of raised capital and strategic partnerships will be crucial for overcoming these hurdles and achieving sustained growth.
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