MSME-focused fintech Progcap is aiming to surpass assets under management (AUM) of Rs 30 billion by the end of the current financial year, supported by strong demand for formal credit from the Micro, Small and Medium Enterprises sector. The company, which secured its NBFC licence in 2022, has been recording significant growth and is targeting a 40–50 per cent increase in business this year.

Progcap had closed with an AUM of Rs 20 billion at the end of March 2025 and expects this to rise by about 50 per cent to around Rs 30 billion by March 2026. The total loans sanctioned are anticipated to grow to Rs 52 billion by the end of FY26, compared to Rs 36 billion at the close of the previous fiscal year.

To support its expansion plans, Progcap is preparing for another funding round later this year, although the exact amount to be raised has not yet been finalised. So far, the company has raised $110 million across four funding rounds, backed by investors such as Tiger Global and Google.

On the asset quality front, the company’s gross non-performing assets (NPA) improved to 1.1 per cent at the end of FY25, down from 1.5 per cent a year earlier. This improvement was attributed to measures like live monitoring, robust partner oversight, and transaction-led underwriting.

Progcap currently operates in 500 Tier II, III, and IV cities, serving more than 30,000 borrowers. The average loan ticket size is around Rs 1 million. The company focuses on lending to retailers and wholesalers across 10 industries, including consumer durables, two-wheelers, FMCG, and agriculture, and has established partnerships with 128 anchor brands.

Progcap distinguishes itself from traditional fintechs by designing inclusive financial solutions aimed at India’s 60 million-strong retail sector, primarily MSMEs in smaller towns. It runs a proprietary, technology-driven co-lending platform that delivers capital and credit intelligence across complex and distributed MSME supply chains in the country.

News source: Outlook Business