Supply chain-based financing start-up Progcap has raised $50 million in the Series C funding round, Inc42 reported.
Multiple companies participated in the funding round, including TransUnion CIBIL's chairman MV Nair, Freecharge's co-founder Sandeep Tandon and companies like GrowX and Beams Fintech Fund.
Beams Fintech Fund, founded by fintech veterans Sagar Agarvwal, Dr. Apoorva Ranjan Sharma, Anuj Golecha, Anil Jain, Gaurav Jain and Venture Catalysts, expressed its satisfaction over this deal with Progcap. “We are pleased to back Pallavi and Himanshu’s supply chain finance platform. Supply chain is a deep problem in India with a credit gap of over $300 Bn and MSMEs require access to capital through innovative financing solutions,” Sagar Agarwal, managing partner, and co-founder, Beams said in a statement.
Progcap's co-founder Pallavi Srivastava added, “We are excited to join hands with Beams’ team to solve challenges faced by MSMEs/SMEs in their financing requirements. Beams has built an interesting value add strategy toward companies. We are looking forward to working together with them on problems being solved by Progcap.”
The start-up plans to use the fresh capital to offer credit to retail micro, small and medium enterprises (MSMEs). Founded by Srivastava and Himanshu Chandra, Progcap secured $40 million in a funding round in June 2022.
The New Delhi-based start-up attempts to bridge the finance gap in the retail space between distributors and retailers by offering technology-backed finance and payments modules. Working with over 700,000 MSMEs, it claims to have disbursed over $1 billion in loans since 2017, registering 4X growth annually.