MSME lender Progcap raises $40-M from Google as part of $70-M Series C round

Google has joined as a new investor in New Delhi-based Progcap - a small and mid-size business-focused financing provider - with an investment of USD 40 million (around INR 308 crore) as part of its Series C funding round led by existing investors Creation Investments and Tiger Global Management. The fundraise values the New Delhi-based startup at USD 600 million. Another existing investor, Sequoia Capital India, also participated, bringing the total Series C funding round to USD 70 million (around INR 539 crore). Progcap plans to use the fresh capital towards product development and support current expansion efforts. It is also looking to acquire a non-banking financial company (NBFC). Progcap, run by Desiderata Impact Ventures Pvt. Ltd, has raised nearly USD 100 million in equity in the last 12 months. It also recorded annualized disbursal of USD 1 billion. Progcap aims to be a full-stack retailer-focused digital bank enabling capital flow across the supply chain to underserved retailers.