Progcap, a pioneer in corporate-led financing solutions for small and mid-size businesses (SMBs) in India, said Tuesday it has raised $40 million in private equity capital at $600 million valuation as part of its Series C extension, taking the total Series C round to $70 million.

The funding was led by Creation Investments and Tiger Global Management, with Google joining as new investor, Progcap said in a statement. Existing investor Sequoia Capital India also participated in this round.

In the last 12 months, Progcap has raised approximately $100 million in equity, solidifying its leading position in the corporate-led retailer financing space in India. The firm recorded annualized disbursals of $1 billion, growing by four times year on year on the back of very strong unit economics.

Progcap will use the funding to support its expansion and accelerate product development. Working at the intersection of software and financial services, the firm aims to be the first full- stack retailer-focused digital bank that digitizes, automates, and eases capital movement across the supply chain to small and medium-sized businesses that have been excluded from the formal financial ecosystem.

“We are delighted that our existing investors have continued to deepen their conviction in Progcap and thrilled that Google has joined us on this journey. 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,” said the company Co-Founders Pallavi Shrivastava and Himanshu Chandra.

Progcap is a financial technology platform that digitizes supply chains and facilitates access to finance for last mile retailers. The firm is working towards revolutionizing the way digital access is delivered to underserved segments of the Indian retail economy that
empower small and medium businesses (SMBs) to progress without obstacles.

Founded by Pallavi Shrivastava and Himanshu Chandra, the firm has already facilitated over 6500 cr credit, working with over 700,000 SMBs through its industry-first, retailer financing platform with strong growth and outstanding portfolio quality. The company is backed by Tiger Global, Sequoia Capital India, Creation Investments, Google, GrowX Ventures and other well-known investors.

“Progcap’s progress has been exceptional. We’re delighted to invest once again behind the Progcap team as they expand their product offering and further serve last-mile retailers in India”, said Tyler Day, partner of Creation Investments.

According to the statement, the $800 billion general trade channel in India has several unmet demands ranging from financial solutions to technological services. Progcap has successfully plugged this credit gap through its innovative product design and technology platform.

The company is empowering retailers by providing them access to flexible, customized capital that matches their business growth requirements along with a host of other technology solutions to help them increase profitability, manage cash flow, and expand their businesses.

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