Progcap, the fintech firm backed by Peak XV and Tiger Global, has showcased remarkable growth by nearly doubling its revenue for the fiscal year ending March 2025. During this time, the company successfully reduced its losses by 87%. According to financial statements obtained from the Registrar of Companies (RoC), Progcap’s operational revenue increased by 93%, reaching Rs 268 crore in FY25, up from Rs 139 crore in FY24.
Progcap is dedicated to providing debt capital to underserved micro and small businesses. The fintech platform digitizes supply chains, making finance more accessible to last-mile retailers. Revenue generated from these services constituted the company’s only income source.
In addition, Progcap earned an extra Rs 10 crore from interest on deposits and gains from current investments. This brought the total income to Rs 278 crore in FY25, a substantial rise from Rs 159 crore in FY24.
On the expense side, employee benefit costs represented 45% of total expenditures. These expenses remained relatively stable, amounting to Rs 126 crore in FY25 compared to Rs 124 crore in FY24. Conversely, finance costs skyrocketed over four times, climbing to Rs 91 crore in FY25 from Rs 22.5 crore in FY24. Write-off amounts also increased to Rs 24.5 crore from Rs 15 crore, and legal fees rose to Rs 6.5 crore.
Overall, the company’s total expenses surged by 37%, reaching Rs 279 crore in FY25, compared to Rs 203 crore in FY24. With revenues surpassing the growth of expenses, Progcap was able to reduce its losses by 87%, down to Rs 6 crore in FY25 from Rs 46 crore in FY24. The company reported a positive EBITDA of Rs 75 crore, showcasing an EBITDA margin of 27.99%. Its return on capital employed (ROCE) stood at 7.40% during this period.
On a per-unit basis, Progcap’s spending was Rs 1.04 for every rupee earned in FY25, an improvement from Rs 1.46 spent in FY24. By the end of March 2025, the Gurugram-based firm reported cash and bank balances totalling Rs 207 crore, while its current assets rose to Rs 1,799 crore.
To date, Progcap has raised approximately $111 million in funding, with Tiger Global, Peak XV, Creation Investments, and GrowX Ventures noted as primary investors. The co-founders of Progcap, Pallavi Shrivastava and Himanshu Chandra, hold a combined stake of 23.41% in the company.
In comparison, Progcap’s competitor FlexiLoans experienced a 47% revenue growth, reaching Rs 385 crore in FY25. This rival firm also saw its profit increase by 33%, climbing to Rs 4 crore in FY25 from Rs 3 crore in FY24.
For Progcap, transitioning from a capital-light marketplace model until 2022 to establishing its own non-banking financial company (NBFC) has proven to be a strategic move. This shift has raised funding requirements and points towards a potential IPO on the horizon. The firm has demonstrated exceptional capability in catering to tier 2, 3, and other retailers in their targeted markets. Additionally, Progcap has developed innovative products like “credit on tap,” leveraging its understanding of its clientele, thereby creating a competitive edge. This firm is certainly one to monitor as it moves towards a potentially profitable FY26 and emerges as a leading candidate for an IPO in the future.
