MSME fintech firm Progcap is planning to raise up to $45 million (approximately ₹425 crore) through equity dilution in the next financial year to support its expansion. According to reports from PTI, the capital raise will be executed through private placement of shares, with the quantum estimated in the range of $40-45 million depending on valuation. Co-founder Himanshu Chandra stated that the company has sufficient capital for current financial year growth needs and may consider equity dilution next financial year, with the dilution expected to be in the single digit range. As reported by Rediff Money, the company is planning this capital raise through equity dilution next financial year to expand its lending business, focusing on retailers and wholesalers.
The fintech firm, which obtained an NBFC licence in 2022, has been experiencing high growth in MSME lending, particularly among wholesalers and retailers. As reported by PTI, Progcap currently operates across 500 cities in Tier II, III and IV markets, serving over 30,000 borrowers with an average ticket size of ₹10 lakh. The company focuses on loans to retailers and wholesalers across 10 industries including consumer durables, two-wheelers, FMCG, and agriculture, with 128 anchor brand partnerships. Explaining the uniqueness of the firm, co-founder Himanshu Chandra noted that unlike traditional fintechs that serve salaried, urban consumers, Progcap designs inclusive financial solutions for India's 60 million retail backbone, specifically MSMEs in Tier II to Tier IV towns.
Through its ProgShakti initiative launched in March last year, Progcap has enabled more than ₹10,000 crore of credit to women entrepreneurs since inception. According to PTI reports, women borrowers currently account for 17% of Progcap's overall portfolio, growing at 40% year-on-year. Co-founder Pallavi Shrivastava noted that almost 90% of these entrepreneurs come from Tier 2 and Tier 3 markets, demonstrating the company's focus on inclusive financial solutions for India's retail backbone. The initiative offers collateral-free loans of up to ₹10 lakh to women entrepreneurs, as confirmed by Rediff Money reports.
The NBFC operates a proprietary, tech-led co-lending platform designed to deliver capital and credit intelligence across India's most complex and distributed MSME supply chains. As reported by PTI, the company's ProgShakti initiative offers collateral-free loans of up to ₹10 lakh to women entrepreneurs, demonstrating its commitment to inclusive financial solutions. The company's unique approach targets India's retail backbone rather than traditional salaried urban consumers, positioning itself as a specialized fintech for MSMEs in Tier II to Tier IV towns across the country.
