Google-backed supply chain finance startup Progcap announced that it has disbursed Rs 3 billion worth of loans during the Diwali season, an increase of 300% compared to the previous year season.
The company also claimed that it became profitable in the second quarter of fiscal year 2023 (July-August-September). A few weeks ago, the firm raised $10 million as part of its Series C funding round. The fintech firm saw a number of investors including Beams Fintech Fund, Google, Creations, Tiger Global, and Sequoia Capital participating in the round. .
Progcap was founded in 2017 by Pallavi Shrivastava and Himanshu Chandra.
Shrivastava said he has been working to build an end-to-end supply chain ecosystem across a range of services. “Our focus has been to consistently provide top-notch customer service while maintaining the best unit economy and efficiency metrics in the industry,” he said.
India is home to around 63 million micro, small and medium-sized enterprises (MSMEs). This sector contributes about 30% of India’s GDP and 45% of India’s exports and is also the second largest employer of labor after agriculture, according to data shared by the MSME Ministry.
However, the sector faces numerous challenges, including the lack of a credit format that prevents them from meeting their working capital needs. This challenge is being solved by the Delhi based company by providing a variety of credit solutions. Since its creation, Progcap has helped some 800,000 small and medium-sized businesses.
The company’s other co-founder, Chandra, stressed that it is encouraging to see a healthy economic recovery post-Covid. However, growth has been uneven across customer segments, he noted. “Demand for premium products remained strong relative to mass goods across all categories, indicating that low-income households are feeling more pressure from high inflation, which is consequently affecting demand,” he added. .
Going forward, Progcap aims to achieve a loan book size of Rs 5000 crore, as well as make its debut on the stock market “within a few years.”
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