MSME-focused fintech firm Progcap is aiming to cross Rs 30 billion in assets under management (AUM) by the end of the current financial year, fuelled by rising demand for formal credit from micro, small and medium enterprises across India. The New Delhi-based firm, which received its NBFC licence in 2022, has been registering robust growth and expects a 40–50 per cent rise in business in FY26.

“We ended FY25 with Rs 20 billion in AUM and expect this to rise to Rs 30 billion by March 2026,” said Progcap co-founder Pallavi Shrivastava. She added that sanctioned loans are also expected to grow from Rs 36 billion in FY25 to Rs 52 billion by the close of FY26.

To support this expansion, Progcap is considering another funding round later this year. “We are in the process, though the quantum is yet to be finalised,” Shrivastava noted. The company has so far raised USD 110 million in four rounds, with participation from major investors such as Tiger Global and Google.

Progcap’s asset quality has also shown improvement, with gross non-performing assets (NPAs) dropping to 1.1 per cent in FY25 from 1.5 per cent the previous year. This improvement is attributed to live monitoring systems, strong partner oversight, and transaction-based underwriting models.

Currently active in 500 Tier II, III, and IV cities, Progcap serves more than 30,000 borrowers with an average loan ticket size of Rs 1 million. The company focuses primarily on lending to retailers and wholesalers across ten sectors, including consumer durables, two-wheelers, FMCG, and agriculture. It has partnered with 128 anchor brands to extend its distribution and support network.

Shrivastava highlighted Progcap’s distinctive approach: “Unlike conventional fintechs focused on salaried, urban customers, Progcap builds inclusive financial solutions for India’s 60 million MSMEs—especially in non-metro regions.”

Operating through a proprietary, tech-led co-lending platform, Progcap provides both capital and credit intelligence to navigate India’s fragmented MSME supply chain.

India’s MSME sector is estimated to face a USD 100 billion credit gap. “These businesses require capital that aligns with their informal operations, seasonal cycles, and unique cash flow patterns,” Shrivastava said, underlining Progcap’s mission to bridge that gap with customised financial products.