Progcap, a New Delhi-based Business-to-Business (B2B) lending platform, has raised $40 million, in an extension of its Series C funding round, according to ETtech report.
Existing investors Creation Investments, Tiger Global Management and Sequoia Capital led the funding round, with Google joining in as a new investor.
The company raised $30 million in the first tranche of its Series C round, led by Tiger Global Management and Creation Investments, last year.
The startup plans to use the funds to support its expansion and accelerate product development, it said in a statement
“We are looking to expand our footprint to more geographies that we will be identifying and apart from that we are working on developing our app that helps to digitise our clients’ day-to-day finances,” cofounder Pallavi Shrivastava said. India is a large market and the company will venture into other geographies in future, she added.
Founded in 2017 by Shrivastava and Himanshu Chandra, the startup provides collateral-free working capital to small and medium-sized businesses (SMBs) and retailers in India.
“We are also working on product expansion and tapping into some newer segments like serving businesses in electrical and electronics and lending for manufacturing as well,” Shrivastava said.
“We are looking to disburse around Rs 1,000 crore of loans by August…we are hitting close to $20 million of annualised revenue run rate (ARR),” Shrivastava said.
The company earns most of its revenue from the retail lending business, while other segments like manufacturing form the rest, said cofounder Chandra. The company is also evaluating acquisition opportunities.
“We are actively looking for some software providers and will be looking to acquire them, but (we have) yet to finalise any deals,” Chandra added.
HrNxt.com Newsdesk has researchers and writers with an excellent domain knowledge about the talent ecosystem, and the business environment. The team keeps a tab on the latest happenings in the ecosystem to bring most relevant news and insights for our readers. You can connect with our newsdesk at newsdesk@hrnxt.com.