Progcap Targets Rs 3000 Cr AUM, Rs 5200 Cr Loan Sanction

New Delhi, Jun 22 (PTI) MSME fintech Progcap looks to cross assets under management (AUM) of Rs 3,000 crore by the end of the current financial year, driven by huge demand for formal credit from the Micro, Small and Medium Enterprises sector, according to a top company official.

The fintech firm, which obtained an NBFC licence in 2022, has been witnessing very high growth, and this year too it is eyeing for 40-50 per cent rise in business.

"We closed at the AUM level of Rs 2,000 crore at the end of March 2025, and we are expecting AUM to rise by 50 per cent to around Rs 3,000 crore by the end of the current financial year," Progcap co-founder Pallavi Shrivastava told PTI.

As far as loans sanctioned are concerned, she said, it should increase to Rs 5,200 crore by the end of FY26 as against Rs 3,600 crore at the end of last financial year.

Asked about a capital raising plan to fund growth, Shrivastava said, "We are looking at one more round of funding later this year. The process is on, but we have not decided on quantum."

The firm has raised USD 110 million through four rounds, including Tiger Global and Google, she said.

With regard to asset quality, she said, the gross non-performing assets improved to 1.1 per cent at the end of FY25 from 1.5 per cent at the end of the previous financial year, supported by live monitoring, strong partner oversight, and transaction-led underwriting.

The fintech is currently present in 500 cities Tier II, III and IV cities with over 30,000 borrowers with average ticket size of loan of Rs 10 lakh, she said, adding, the lending firm focuses on loans to retailers and wholesalers across 10 industries like Consumer Durables, 2 Wheelers, FMCG, Agri etc and have 128 anchor brand partnerships.

Explaining the uniqueness of the firm, she said, "unlike traditional fintechs that serve salaried, urban consumers, Progcap designs inclusive financial solutions for India's 60 million retail backbone, basically MSMEs in Tier II to Tier IV towns."

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, she said.

Pointing out that India's MSMEs face a USD 100 billion credit gap, she said these businesses don't just need capital, they need capital that understands their informality, seasonality and cash flow rhythm.