Progcap, a Delhi-based lending startup has bagged $5 million (approx ₹34 crore) in its Series A funding round led by Sequoia India. While, other participants from the round includes MV Nair, chairman of CIBIL; Sandeep Tandon, co-founder of Freecharge along with existing investors GrowX Ventures Fund and Yes Bank’s co-founder Somak Ghosh.
Progcap co-founder Pallavi Shrivastava said that the fresh funds will be used towards operations, building technological differentiation, and to accelerate the pace of its pan-India expansion.
Ashish Agrawal, principal, Sequoia Capital India Advisors, said, ”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.”
“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,” Manu Rikhye, Partner, GrowX Ventures Fund said.
The company claims that it is present in over 500 towns enabling over 50,000 retailers and has more than 100 crore business volume facilitation.