Business lender ProgCap said to raise $5m in funding

ProgCap, which supplies micro and small enterprises in India customised financing, has reportedly raised $5m in funding.

The round was led by Sequoia India and received support from GrowX Ventures Fund, CIBIL chairman MV Nair, and former Freecharge founder Sandeep Tandon, a number of reports in the media claim.

This investment has come just months after it closed a $1m seed round which was led by GrowX Ventures. It used the previous funding line to support the growth of the platform in India.

With the fresh $5m, Progcap will enhance its operations and its technology, as well as accelerate its expansion plans across the country, the reports state.

Progcap can assess a borrower’s credit worthiness even if they have no formal credit history and instead judges it on their daily business activities and supply chain ecosystem parameters. Its scores are completed in real-time.

By using the mobile application, customers can easily take out loans, request more financing, track their transactions or make repayments.

Earlier in the year, Sequoia India led the $25m funding round of InsurTech startup Turtlemint. The platform utilises algorithms and data analytics to recommend insurance products for car, bike, health and life policies.

There have been a couple of SME lenders in India to raised fresh funding over the past couple of weeks. Last week, Indifi bagged $21.31m in its Series C round, while Drip Capital closed its Series B on $25m.

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