Google backs Indian fintech startup’s $40m series C round

Progcap, a retailer-focused fintech startup based in India, has secured US$40 million in a series C extension round co-led by Creation Investments and Tiger Global Management.

New investor Google and existing backer Sequoia Capital India also participated in the round. The latest raise brings Progcap’s total series C funding to US$70 million and puts its valuation at US$600 million.

Progcap co-founders Himanshu Chandra (left) and Pallavi Shrivastava / Photo credit: Progcap

Founded in 2017 by Pallavi Shrivastava and Himanshu Chandra, Progcap provides working capital to last-mile retailers in India through a mix of technology and alternative risk scoring. The company’s solutions include credit loans, payments, supply chain digitization, and business management, among others.

So far, Progcap has served over 700,000 small and medium-sized retailers across India. Its business has achieved annualized disbursals of US$1 billion and reached 4x year-on-year growth.

“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,” the company’s co-founders said in a statement.

The Delhi-based startup will use its new funds to further invest in product development and expansion effort. It aims to tap into India’s US$800 billion retail market industry by becoming the country’s “first full-stack retailer-focused digital bank.”

See also: 50 rising startups in India