Indian Fintech Startup Progcap Raises 40 Million from Google
An Indian fintech start-up, Progcap, has raised USD 40 million of funding from Google in its series C funding round. Progcap caters to small and medium-sized businesses, with digital financing solutions like online payments, invoicing, and most importantly, collateral-free capital. It serves over seven lakh small retailers with a revolving credit line of USD 10,000 to USD 12,500 to them.
"Progcap is becoming the core operating engine for all the transactions of its customers, providing them with credit and technology solutions that make their businesses more efficient," said Pallavi Shrivastava and Himanshu Chandra, Co-founders of Progcap.
The company has raised approximately USD100 million with different funding rounds. Its most recent series C funding round was led by Creation Investments and Tiger Global. The current round, about which we are talking here, is an extension of the company`s Series C round. Existing investors Sequoia India and Southeast Asia also participated in the round. Earlier, it raised USD30 million from Tiger Global and Creation Investments.
Progcap said the company will use new funds to expand and accelerate product development. The startup has facilitated credit disbursals worth over INR 6,500 Cr, catering to over 7,00,000 small and medium businesses.
"We`re delighted to invest once again behind the Progcap team as it expands its product offering and further serves last-mile retailers in India," said Tyler Day, Partner, Creation Investments.
According to the company, a big number of Small and Medium Enterprises have remained excluded from the formal financial ecosystem. The company envision being the first retailer-focused digital bank that digitizes, automates and eases capital movement to help those excluded businesses. Over the course of the upcoming two years, the company plans to impact over 5 million SMBs. With a huge spectrum of innovative products, the company aspires to transform the ‘Fintech for Retailers’ scenario of the USD 800 billion-worth Indian Retail Industry.
The rise of fintech companies can provide a better ecosystem for small businesses to prosper and take the advantage of cutting-edge technology. It can help both the consumers and business leaders by making things easy, swift and accurate. In India, with a big number of youths starting and closing the business every year it is very important to understand their problems and find solutions.
Large penetration of fintech companies in the market can help businesses have proper capital and management of funds. It also allows them to understand and grow with ongoing trends by incorporating services like mobile wallets, financial asset trading, and accounting automation.
Funding is a big problem that most businesses suffer from. However, the availability of a number of governmental and bank schemes do a good job but most of them do not have anything to keep as security. This does not let them raise capital from banks and government schemes. Rise of fintech companies like Progcap is a good sign in the direction of solving such problems.