Peak XV and Tiger Global-backed fintech firm Progcap nearly doubled its revenue in the fiscal year ended March 2025. During the same period, the company reduced its losses by 87%. Progcap’s revenue from operations jumped 93% to Rs 268 crore in FY25 from Rs 139 crore in FY24, according to its financial statements sourced from the Registrar of Companies (RoC).

Progcap facilitates debt capital for underserved micro and small businesses. The fintech platform digitizes supply chains and facilitates access to finance for last-mile retailers. Revenue from these services was the sole source of income for the company. Progcap made an additional Rs 10 crore from interest on deposits and gains on current investments, which pushed its total income to Rs 278 crore in FY25 from Rs 159 crore in FY24. On the cost side, employee benefit expenses accounted for 45% of total expenses. This cost remained flat at Rs 126 crore in FY25 as compared to Rs 124 crore in FY24. Finance costs surged over four times to Rs 91 crore in FY25 from Rs 22.5 crore in FY24. Write-offs also rose to Rs 24.5 crore from Rs 15 crore, while legal charges increased to Rs 6.5 crore.

With the company’s revenue outpacing expense growth, Progcap managed to cut its losses by 87% to Rs 6 crore in FY25 from Rs 46 crore in FY24. The company posted a positive EBITDA of Rs 75 crore with an EBITDA margin of 27.99%. Its ROCE was 7.40% during the period. On a unit basis, the company spent Rs 1.04 to earn a rupee in FY25, compared to Rs 1.46 in FY24. The Gurugram-based firm reported cash and bank balances of Rs 207 crore at the end of March 2025, while its current assets rose to Rs 1,799 crore.

For Progcap, the shift from a capital light marketplace model till 2022, when it simply was the go between as large lenders took the risk, and having its own NBFC for lending has been a well managed transition. While that has scaled up fund requirements and a possible IPO in the pipeline too, the firm has demonstrated a superior ability to deliver to the tier 2, 3 and beyond retailers it claims as stomping grounds. The firm has built some innovative products like credit on tap as it has learnt more about these customers, and that has built a sort of moat for it as well. Certainly a firm to watch as it delivers a possibly profitable FY26, and will certainly be a prime candidate for an IPO in time.

About Progcap

Progcap has been co-founded in 2017 by Pallavi Shrivastava and Himanshu Chandra to provide supply chain financing for underserved MSMEs. Progcap is an Indian fintech company founded in 2017 that provides last-mile, collateral-free working capital to micro and small businesses, primarily aiming to digitize supply chains for retailers. Headquartered in Delhi, it uses proprietary AI-based, non-traditional data for credit scoring to serve underserved, rural, and semi-urban SME retailers.