Total amount raised
$150.6 Millions
Latest funding date
10/1/2022
Location
Progcap has successfully raised significant funding from prominent investors such as Google, Tiger Global, Sequoia Capital, Stride Ventures, and Creation. The fintech firm is dedicated to revolutionizing financial access for underserved segments of the Indian retail economy through 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, founded in 2017 in New Delhi, India, is a fintech company dedicated to providing financial access to underserved segments of the Indian retail economy. The company focuses on empowering small and medium businesses (SMBs) with capital for progress through specialized financing and technology products.
Co-founded by Pallavi Shrivastava, Progcap offers services such as credit, payments, and business management to digitize supply chains and facilitate access to finance for last-mile retailers. The company has grown significantly, with a team of over 30 employees working to revolutionize financial access for SMBs.
How Much Funding Has Progcap Raised?
- Seed Round
- Amount Raised: $1M
- Date: April 2019
- Lead Investors: growX ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To kickstart operations and develop initial product offerings.
- Series A
- Amount Raised: $5M
- Date: July 2019
- Lead Investors: Peak XV Partners
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand the team and scale the platform's capabilities.
- Debt Financing
- Amount Raised: $1.4M
- Date: February 2021
- Lead Investors: Stride Ventures
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To support working capital needs and operational expenses.
- Series B
- Amount Raised: ₹1.9B
- Date: June 2021
- Lead Investors: Peak XV Partners, Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To accelerate growth and enhance technology infrastructure.
- Series C (First Round)
- Amount Raised: ₹2.2B
- Date: October 2021
- Lead Investors: Creation Investments Capital Management, LLC, Tiger Global Management
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To expand market reach and develop new financial products.
- Series C (Second Round)
- Amount Raised: $40M
- Date: June 2022
- Lead Investors: Creation Investments Capital Management, LLC, Tiger Global Management, Venture Catalysts
- Valuation at Round: $600M
- Motivation Behind the Round: To support the company's growth and expansion efforts.
- Series C (Third Round)
- Amount Raised: ₹4B
- Date: October 2022
- Lead Investors: Beams FinTech Fund
- Valuation at Round: Not publicly disclosed
- Motivation Behind the Round: To address the credit gap in India's supply chain and provide SME/MSMEs access to capital.
Total Amount Raised: $47.4M + ₹8.1B
Current Valuation: $600M
Key Investors
- Beams FinTech Fund
- Details: Beams FinTech Fund is a growth-stage investment fund focused on 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: Fintech, financial services, technology.
- Notable Investments: Specific notable investments are not mentioned in the sources.
- Google
- Details: Google is a global technology company known for its search engine, advertising services, and various technology products. It has a significant presence in the tech industry and invests in innovative startups.
- Investment Focus Areas: Internet-related services, technology innovations, advertising.
- Notable Investments: Various tech startups and companies, though specific examples are not mentioned in the sources.
- Tiger Global Management
- Details: Tiger Global Management is a global investment firm that focuses on private and public companies in the internet, software, consumer, and financial technology sectors. It is known for its significant investments in high-growth technology companies.
- Investment Focus Areas: Internet, software, consumer, financial technology.
- Notable Investments: Facebook, LinkedIn, Spotify.
- Creation Investments Capital Management, LLC
- Details: Creation Investments is a global private equity firm focused on financial services and technology companies. It invests in companies that provide financial services to underserved populations.
- Investment Focus Areas: Financial services, technology, underserved populations.
- Notable Investments: Specific notable investments are not mentioned in the sources.
- Peak XV Partners
- Details: Peak XV Partners is a venture capital firm that invests in early to growth-stage companies across various sectors. It has a strong focus on technology and innovation.
- Investment Focus Areas: Technology, innovation, early to growth-stage companies.
- Notable Investments: Specific notable investments are not mentioned in the sources.
What's Next for Progcap?
Progcap stands at the cusp of a significant opportunity, with the Indian fintech industry projected to reach $1.3 trillion by 2025. The company aims to address the $300 billion credit gap in India's supply chain sector, providing innovative financing solutions to MSMEs. This vast market potential positions Progcap to expand its credit offerings and enhance its digital banking platform.
Future fundraising opportunities appear promising, given the strong investor interest and the substantial market opportunity. Progcap has already raised $110 million, and the growing fintech market suggests continued potential for attracting capital. However, the company may face challenges such as navigating regulatory requirements and managing risks associated with lending to underserved vendors.
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