Last-mile FinTech lender Progcap closed a $30 million Series C funding round led by existing investor Tiger Global Management and new backer Creation Investments, with additional participation from Sequoia Capital India, according to a press release on Monday (Oct. 4).
The India-based FinTech startup offers funding opportunities to small- to medium-sized businesses (SMBs), which comprise the majority of India’s economy. Progcap extends last-mile capital via FinTech products that automate the movement of funding across the supply chain.
See also: 50% of Delivery Costs Occur in Last Mile
Progcap is planning to use the fresh infusion of capital to build out its supply chain banking platform to assist its merchants and corporate network in India. The company has its sights set on disbursing $1 billion by next March.
Alex Cook, a partner at Tiger Global, said the firm doubled down on its investment in Progcap because it has confidence that the startup has what it takes to continue growing its FinTech platform to attract more merchants.
Headquartered in New Delhi and founded in 2017 by Pallavi Shrivastava, Progcap recruited top talent to help advance its business expansion, including former McKinsey & Company partner Abhinav Singh, who now serves as chief growth officer, and Ashish Gupta, former chief technology officer for Policy Bazaar and now in charge of tech and product functions for Progcap.
The company said it has been able to plug the credit gap in India by leveraging technology for fast and easy supply chain evaluations for credit assessment. The approach is customized so that each business gets a solution that works best for them. Progcap also offers businesses numerous additional technology solutions to grow profits and manage cash flow.
Since launching, Progcap extended more than $300 million in last-mile credit. Its platform is used by more than 60 corporations and 450,000 retailers, and its monthly disbursal volume has escalated by 400% in the past 12 months.