Retailer-focused financing provider Progcap on Monday said it has raised $30 million (Rs 221 crore) as part of its Series C funding round led by Tiger Global and Creation Investments.
Sequoia Capital India also participated in the funding round, said Progcap in a statement.
The Series C funding comes less than four months after the company raised $25 million as part of its Series B investment round led by Tiger Global and Sequoia Capital in June.
Progcap, operated by Desiderata Impact Ventures Pvt Ltd, will use the fresh capital to build a broader and deeper supply chain banking platform for its merchants and corporate network in India at a faster pace.
Delhi-based Progcap was set up in 2017 by Pallavi Shrivastava and Himanshu Chandra. It aims to be a full-stack retailer-focused digital bank which enables capital flow across the supply chain to underserved retailers.
The company says it provides clients with easily accessible and flexible collateral-free working capital loans through its Last Mile Retailer Finance (LMRF) solution. The financing is provided to retailers in Tier-II, Tier-III and Tier-IV locations.
The fintech startup claims its platform is used by 450,000 retailers and more than 60 corporates, and has disbursed Rs 2,500 crore of loans on its platform. It aims to touch $1 billion in disbursals by March 2022.
In the past three months, the company also made major hirings. For instance, it roped in Abhinav Singh (previously associate partner at McKinsey & Co) as chief growth officer and Ashish Gupta (previously CTO at Policybazaar) as tech and product lead.
Earlier in February, the startup collected Rs 10 crore (about $1.37 million) in a debt funding round led by Stride Ventures in February.
Previously, Sequoia led a $5 million (about Rs 36.4 crore) Series A round of funding into Progcap in July 2019. Others who participated in that exercise included CIBIL chairman MV Nair, Freecharge co-founder Sandeep Tandon and GrowX Ventures Fund. In April 2019, it raised $1 million (about Rs 7.2 crore) in a round led by GrowX Ventures.
Tiger Global has increased its India bets and has led or participated in deals worth $2.77 billion between January and June this year.
In fresh investments made this year, Tiger Global led or co-led funding rounds in investment platform Next Billion Technologies Pvt Ltd or Groww, conversational messaging platform Gupshup Technology India Pvt Ltd, and Indian social network ShareChat (Mohalla Technology Pvt Ltd), making them all unicorns in the process. These were new verticals for the firm.
Tiger Global has also been aggressive in backing its existing portfolio firms.
It made investments this year in existing portfolio companies including marketplaces Moglix and Infra.Market and turned them both into unicorns.
