Stride Ventures Leads INR 10 Cr Debt Round In Sequoia-backed ProgcapThe startup will utilize these funds to increase its AUM and further consolidate its presence amongst retailers across the country
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Venture debt firm, Stride Ventures, on Tuesday announced that it has led a debt round of INR 10 crore in Progcap, a financing technology firm.
This investment marks Stride Ventures' fourteenth investment from its maiden fund and second investment in the fintech space.
Founded in 2017 by Pallavi Shrivastava and Himanshu Chandra, Progcap claims to have scaled up over 5X post COVID with best-in-class asset quality. The company has over 2 lakh retailers on its platform and has partnered with some of the largest brands in the country.
The startup provides access to fast and flexible collateral-free working capital to retailers in Tier-II, III, and IV areas, where retailers typically face challenges in accessing capital for their businesses.
The startup will utilize these funds to increase its AUM and further consolidate its presence amongst retailers across the country. The startup will also look to strengthen its ties with banks and corporates by leveraging Stride's network.
Pallavi and Himanshu, Co-Founders, Progcap, said, "We are excited to partner with Stride Ventures as we continue to scale the business. While Progcap is well capitalized, it is Stride team's deep expertise in the banking ecosystem that we are looking forward to tap into to help accelerate our growth. We have just crossed $100 Million in disbursals and expect to reach US$1B GMV by March "22."
On the funding, Ishpreet Gandhi, Founder and Managing Partner, Stride Ventures, said "India has a complex supply chain. However, the solutions for small dealers and retailers are limited. Accessibility to credit will enable them to be at the forefront of India's consumption story and Progcap is well positioned to drive this change. We are witnessing strong momentum in FinTech and acknowledge the size of the opportunity in India. Given our banking vintage and relationships across banks and corporates, we are excited to partner with Progcap in their journey."
