Google & Tiger Global-backed fintech start-up Progcap disburses Rs 3,000 crore worth loans
Google-backed supply chain financing start-up, Progcap, announced that it has disbursed Rs 3,000 crore worth of loans during the Diwali season, an uptick of 300 per cent as compared to the year-ago season.
The company also claimed that it turned profitable in the second quarter of FY2023 (July-August-September). A few weeks ago, the company raised $10 million as part of its series C round of funding. The fintech company saw several investors including the likes of Beams Fintech Fund, Google, Creations, Tiger Global, and Sequoia Capital participating in the round.
Progcap was founded in 2017 by Pallavi Shrivastava and Himanshu Chandra.
Shrivastava said that it has been working to build an end-to-end supply chain ecosystem through a gamut of services. “Our focus has been to constantly deliver top notch customer service while maintaining the best unit economics and efficiency metrics in the industry,” she said.
India is home to about 63 million Micro, Small, and Medium Enterprises (MSMEs). This sector contributes about 30 per cent to India’s GDP, and 45 per cent to India’s exports and is also the second largest employer of workforce after agriculture, as per data shared by the MSME Ministry.
However, the sector faces numerous challenges including lack of format credit which prevents them from meeting their working capital needs. This challenge is being solved by the Delhi-based company by providing a variety of credit solutions. Since its inception, Progcap has helped about 800,000 small and medium businesses.
The company’s other co-founder, Chandra, highlighted that it is encouraging to see a healthy economic recovery post Covid. However, the growth has been uneven across customer segments, he noted. “Demand for premium products held strong in comparison to mass goods across categories, indicating lower income households feeling the pinch of high inflation more which is consequently hitting the demand,” he added.
Going forward, Progcap aims to achieve a 5,000 crore loan book size as well as make its stock market debut “in a few years.”