Financial technology startup Progcap said on Wednesday it has raised $5 million (Rs 34.4 crore at current exchange rate) in a Series A round of funding led by venture capital firm Sequoia Capital India.
Progcap provides collateral-free working capital to small retailers in semi-urban and rural areas through its Last Mile Retailer Finance facility.
Earlier in July, VCCircle exclusively reported that Delhi-based Progcap was raising the money from Sequoia and other new investors.
Others who participated in the round include MV Nair, chairman of CIBIL (formerly Credit Information Bureau (India) Ltd); FreeCharge co-founder Sandeep Tandon; and existing investors Somak Ghosh, managing partner at Contrarian Capital India Partners, and GrowX Ventures Fund.
Progcap co-founder Pallavi Shrivastava said the fresh capital will help strengthen operations and technological infrastructure, as well as accelerate expansion around the country.
GrowX Ventures partner Manu Rikhye said Progcap, owned by Desiderata Impact Ventures Pvt. Ltd, had managed to create a niche for itself, and that its product was helping retailers improve their sales and drive growth for their brands.
The Series A round comes after VCCircle reported in April 2019 that Progcap had raised $1 million (around Rs 7 crore) in a round of funding led by GrowX Ventures.
Progcap was co-founded by Shrivastava and Himanshu Chandra in 2017. Shrivastava, an alumnus of XLRI Jamshedpur, has worked with World Bank’s International Finance Corporation. Chandra was associated with Barclays and Standard Chartered Bank in the past.
Deals in the fintech space
The fintech segment has seen a lot of activity over the past few months, with companies seeking to provide customers with new-age products as well as address gaps in the financial services sector.
Earlier this month, Bengaluru-based digital banking startup NiYO Solutions mobilised $35 million in a Series B funding round from investors including Chinese conglomerate Tencent.
In June, Tiger Global Management led a Rs 210 crore Series B funding round in Bengaluru-based neo-bank Open, which provides collection and payout automation services for small businesses. The New York-based firm also led a $15.5 million (around Rs 107.7 crore) Series A round in OkCredit, which helps merchants keep track of payments and credit records via a mobile application.
