(L-R) Shrivastava and Himanshu Chandra, cofounders, ProgcapNew Delhi-headquartered supply-chain financing startup Progcap is in advanced talks to close a $100 million equity funding round, according to two people in the know.
The round could be led by global alternate assets manager TPG, said one of the people quoted above. Japanese financial services major Mitsubishi UFJ Financial Group could also participate in the round, they added. Progcap is backed by Peak XV Partners, Creation Investments, Tiger Global and others.
According to data sourced from Tracxn, the company has raised $111 million in equity funding since inception. In 2022, the fintech firm had closed a $50 million funding round led by Tiger Global and Creation Investments, which valued the startup at close to $600 million.
“This round could be at a lower valuation, there has been a lot of back and forth on the valuation bit, which has resulted in this round taking time to close,” one of the people quoted above said.
The second person quoted above added that the round will primarily be used to scale up its in-house non-banking finance company named Progfin.
Responding to ET’s queries, Pallavi Srivastava, cofounder, Progcap, said: “As a policy, we do not comment on market speculation”.
TPG did not share a comment.
Venture investors have opened up to taking larger bets in the supply-chain financing ecosystem as wide-scale digitisation of payments and GST have both helped the sector grow in an organised fashion.
Mintifi is the other supply chain financing startup which raised a large $180 million funding round in December 2024 from Prosus, Ontario Teacher’s Pension Plan and others. The firm was valued at $825 million post the round. In August 2024, Pune-based Vayana, which offers trade financing solutions, raised $20 million in a round led by SMBC Asia Rising Fund.
Progcap started in 2017 primarily as a sourcing channel for banks and other non-banking finance companies. After the tightening of the digital lending guidelines (DLG) by the Reserve Bank of India, Progcap in 2022 started its own lending operations through its in-house NBFC. This helped the firm reduce its cost of borrowing and also helped it grow the business in a regulatory compliant fashion.
“For Progcap, its own in-house NBFC has just started scaling up, previously it was mostly focusing on sourcing loans for banks and NBFCs, now this round will help scale up its operations,” said the second person quoted above.
The company offers credit to small and medium retailers, through 130 brands and 3,500 distributors.
At the end of June 2025, Progfin reported an asset base of ₹1,997 crore. The company had closed FY25 with total revenue of ₹278 crore and a net loss of ₹6 crore. In the first quarter of the current fiscal, Progcap reported total revenue of ₹83 crore and reported a ₹3 crore net profit on its books.
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