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.
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.”
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.