Progcap, a startup in corporate financing, raised $40 million from investors in its Series C investment.
The business had previously received $30 million from Creation Investments and Tiger Global. It raised a total of $70 million during the most recent round, valued at $600 million.
The venture, which was established in 2017 by Pallavi and Himanshu Chandra, offers quick, adaptable, and collateral-free loans to small businesses in lower-tier Indian locations where shops frequently struggle to obtain working cash.
The startup will use the additional funding to assist product development and growth.
To date, Progcap has raised approximately US$100 million in equity and will use the additional funding to support its expansion and accelerate product development.
“Progcap’s progress has been exceptional. We are pleased to invest in Progcap once again as the team expands its product offering to further serve retailers in India,” said Tyler Day, partner of Chicago-based Creation Investments, which manages US$1.9 billion on behalf of institutional investors, family offices and high net worth individuals.
Working at the intersection of software and financial services, Delhi-based Progcap aims to be the first full-stack retailer-focused digital bank that digitizes, automates, and eases capital movement across the supply chain to small and medium-sized businesses that have been excluded from the formal financial ecosystem.
Progcap co-founders Pallavi Shrivastava and Himanshu Chandra said: “We are delighted that our existing investors have continued to deepen their conviction in Progcap and thrilled that Google has joined us on this journey. Progcap is becoming the core operating engine for all the transactions of its customers, providing them with credit and technology solutions that make their businesses more efficient.”
Progcap is successfully closing the credit gap backed by its technology and a seamless supply chain evaluation for credit assessment. The company is empowering retailers by providing them access to flexible, customized capital that matches their business growth requirements along with a host of other technology solutions to help them increase profitability, manage cash flow and expand their businesses.