CHENNAI: Tech-enabled lending company
Progcap
, which lends to last-mile retail businesses, has raised a seed funding round of Rs 7 crore led by early-stage venture fund
GrowX
ventures.
Angel fund Contrarian Drishti along with angel investors Somak Ghosh and Abhishek Dalmia participated in the round.
Delhi-based Progcap, which aims at empowering retailers by providing them affordable and timely credit leveraging technology, aims at using the funding to scale its Last Mile Retailer Finance facility.
Founded by Pallavi Shrivastava and Himanshu Chandra in 2017 (both long-term professionals in the financial services industry), Progcap provides quick and flexible access to collateral-free, working capital for retailers in Tier II, III and IV towns.
"Over half of Progcap’s customers are new to the credit ecosystem," the company said.
Commenting on the fundraise, the company's founders said, “There are over 20 million retailers in India who are unplugged from formal financing. We are working towards building a platform to integrate these businesses into the real economy.”
Progcap’s platform risk models the small retailer businesses using non-traditional data, thereby creating credit scores for customers that are currently left out by the traditional financial institutions.
Manu Rikhye, Partner at GrowX ventures, said, “Progcap is focused on a very large and underserved market of micro-business owners. Their approach to solving the financial needs of the last mile retailers will deliver tremendous value across the supply chain, starting from the large brands and distributors to the retailers.”
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