Progcap, an India-based fintech and non-banking financial company (NBFC) focused on lending to micro, small, and medium enterprises (MSMEs), plans to raise about US$40 million to US$45 million through a private share placement in FY2028 to expand its lending business, co-founder Himanshu Chandra said.

Chandra said Progcap has enough capital for the current financial year and may look at equity dilution next financial year, with the dilution expected to remain in the single digits.

Progcap obtained its NBFC license in 2022 and operates in 500 cities, mainly in tier 2, tier 3, and tier 4 markets.

It has more than 30,000 borrowers, with an average loan size of 1 million rupees (US$11,000).

The company said women borrowers account for 17% of its overall loan portfolio.

It also said it has enabled more than 100 billion rupees (US$1.06 billion) in credit to women entrepreneurs through its ProgShakti collateral-free lending program since the initiative launched in March last year.

🔗 Source: The Economic Times