Progcap to Raise Up to USD 45M in FY28 Equity Round

By: Women Entrepreneurs Review Team | Monday, 29 June 2026

Progcap is a fintech firm focused on MSME segment planning to raise private shares worth funds of approximately USD 45 million (around Rs 425 crore) in FY28, the funds so raised will be used for supporting the growth of lending business all over India. The raising of funds, with single-digit equity dilution as the most probable scenario, is a reflection of how the company is witnessing very high growth in MSME lending especially wholesalers and retailers located in Tier II, III and IV cities.

In conversation with PTI, Progcap Co-founder Himanshu Chandra revealed that the company has enough funds to support its growth for this financial year and that they are looking forward to the equity raise in the next year. He also mentioned that the final amount of the fundraising would be a function of the company's valuation at the time of the deal.

While describing the expansion plan of the company, Chandra mentioned that Progcap a company that got its NBFC license in 2022, has increased its area of operations to 500 cities and as of now, it serves more than 30,000 borrowers with an average loan amount of Rs 10 lakh. The company extends credit support to retailers and wholesalers of different industry products like consumer durables, two-wheelers, FMCG and agriculture amongst others, with the help of 128 major brand associations.

Key Highlights:

• ProCap aims at raising funds worth USD 40-45 million through the issuance of shares during FY28 by diluting equity in single digits
• The fintech firm currently has operations in 500 cities and serves more than 30,000 borrowers whose loan size averages Rs 10 lakh
• Under the ProShakti program, ProCap has been able to provide over Rs 10,000 crore credit to women entrepreneurs from last March onwards

Chandra emphasized the company's business model by saying Progcap targets India's vast MSME sector in smaller towns whereas most traditional fintech companies mainly cater to salaried urban consumers. He further explained that the NBFC runs a technology-based proprietary co-lending platform that is aimed at facilitating capital and credit flow to MSME segments spread all over India.

Besides, the company has further enhanced its commitment to women entrepreneurship through its ProgShakti initiative which was first rolled out in March last year. The programme extends collateral-free loans up to Rs 10 lakh to women entrepreneurs to enable them to avail formal credit more easily.

Progcap Co-founder Pallavi Shrivastava said the initiative has facilitated the disbursement of credits worth over Rs 10,000 crore to women entrepreneurs since its inception. She added that women borrowers presently represent 17 percent of the company's total lending portfolio and their growth rate is 40 percent year on year.

Pallavi also mentioned that about 90 percent of the women entrepreneurs who received assistance through the program are residing in Tier II and Tier III cities, which demonstrates that women businesses in the emerging cities are increasingly seeking financial solutions. The company, by continuing to focus on inclusive lending and MSME financing, is working towards its larger goal of taking financial access to areas beyond urban markets and, at the same time, helping small businesses grow all over India.