Delhi-based Progcap has secured $5 million as part of its Series A funding round. Led by Sequoia India, the round also saw participation from Mr MV Nair, Chairman of CIBIL, Mr. Sandeep Tandon, ex- founder of Freecharge along with existing investors GrowX Ventures Fund and Somak Ghosh.
Founded in 2017 by Pallavi Shrivastava and Himanshu Chandra, Progcap is a financial technology company, which facilitates debt capital for underserved micro and small businesses in India. The venture leverages its innovative Last Mile Retailer Finance solution to enable access to collateral-free loans to retailers.
â€śWe are delighted to have Sequoia India, with its rich experience of providing support to some of the biggest technology start-ups in India, on board as our investor. The capital infusion will help us strengthen our operations, build on our technological differentiation, and accelerate the pace of our pan-India expansion. The continued faith that our existing investors have demonstrated by participating in our latest funding round also encourages us to build on our good work so far and make financial inclusion a tangible reality for more micro and small businesses in the country,â€ť co-founder Pallavi Shrivastava, said in a statement.
Ashish Agrawal, Principal, Sequoia Capital India Advisors, added, â€ťIndia has multi-layered distribution chains where credit is an important enabler. Currently, only large distributors are able to get access to inventory financing through banks and other formal channels. With a well-designed product, Progcap is able to extend credit to smaller sub-dealers and retailers. Sequoia India is excited to partner with Progcap in their vision to provide access to formal credit to such small businesses in India.â€ť
The venture has previously raised a capital investment of over $1 million in April 2019 from early-stage investment firms GrowX Ventures and Contrarian Drishti, as well as angel investors Somak Ghosh and Abhishek Dalmia.