Progcap, a platform that helps small and medium-sized businesses raise debt, has raised $40 million from Creation Investments and Tiger Global Management, with Google joining as a new investor. Existing investor Sequoia Capital India also participated in the round.

The financing is an extension of the company’s Series C round, valued at $600 million. Progcap has raised $70 million as part of its Series C funding round. Progcap will use the funds to support its expansion and accelerated product development.

Founded in 2017 by former XLRI Jamshedpur alumni Pallavi Shrivastava and Himanshu Chandra, Progcap provides loans to businesses without formal credit history or history. Progcap facilitates the loan, with the actual loan being done by its partners Muthoot Finance, Credit Saison and Star Finserv.

The company’s Series C round comes a year after a $25 million Series B round led by Tiger Global and Sequoia Capital in June 2021. The company raised the balance of the $30 million Series C round in October 2021.

The company aims to be a retailer-centric, full-stack digital bank that digitises, automates and streamlines the movement of funds across supply chains to SMEs outside the formal financial ecosystem.

In FY22, the company said that Progcap achieved its target of $1 billion in annual spending, a 4x year-over-year increase. The company competes with other MSME fintech lenders such as Kissht, Indifi Technologies, Lendingkart, Rupifi and more.

The startup has partnered with over 700,000 SMEs and facilitated credit payments worth over Rs 650 crore.