Fintech Startup Progcap Secures an Investment of $5 million, Led by Sequoia India
Delhi-based Progcap has recently secured $5 million as part of its Series A investment. 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. Progcap’s unique solution enables the company to reach retailers operating even in semi-urban and rural areas across the country.
Speaking on the investment, co-founder Pallavi Shrivastava, said, “We 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.”
Ashish Agrawal, Principal, Sequoia Capital India Advisors, added, ”India 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.”
Manu Rikhye, Partner, GrowX Ventures Fund said, “ We are very excited with progress at Progcap. In a short period of time, Progcap has created a niche for itself by facilitating seamless access to credit for the retail segment. The product today is helping retailers improve their sales and drive growth for the brands. We look forward to being a part of Himanshu and Pallavi’s journey as they continue to build their outstanding business.”
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.
