Big: Progcap’s operating revenue shoots up 4.5X in FY22

Progcap, a fintech company that received funding from Google and Sequoia, experienced significant growth in scale in the fiscal year 2022 as its collection increased over four times. However, the company’s expenses and losses also rose at a similar rate.

According to the financial statements filed with the Registrar of Companies, Progcap’s operating revenue rose to Rs 26.41 crore in FY22 from Rs 5.92 crore in FY21, representing a 4.5 times increase.

Progcap Financials


Progcap, a company that provides collateral-free loans to small and medium businesses, generated its income from two sources – collection of interest and business management. In FY22, the company also earned Rs 11.87 crore from interest on fixed deposits and gain on the sale of mutual funds, which was evident as it raised $30 million in a Series C round during the fiscal year.

Like most growth stage startups, Progcap’s largest cost center was employee benefits, which accounted for 69.5% of its overall expenditure. This cost increased 3.9 times to Rs 43.51 crore in FY22 from Rs 11.14 crore in FY21, including Rs 5.93 crore as non-cash ESOP expenses.

During FY22, Progcap’s loan processing and legal professional fees increased 4.5 times and 24 times respectively, to Rs 3.39 crore and Rs 2.64 crore. The company also incurred Rs 1.35 crore for software and hosting fees, resulting in an overall cost increase of 4.4 times to Rs 62.6 crore in FY22 from Rs 14.36 crore in FY21.

As a result, Progcap’s losses surged 4.4 times to Rs 24.07 crore in FY22 from Rs 5.42 crore in FY21. On a unit level, the company spent Rs 2.37 to earn a single unit of operating revenue.

The Shareholding Pattern

Progcap Shareholding


Progcap has raised over $100 million to date, with Sequoia Capital being the largest stakeholder with 31.4% holding, followed by Tiger Global and Creation Investments with 17% and 8.1% respectively. The company competes with other SMB lenders such as Indifi and Lendingkart, which reported revenues of nearly Rs 100 crore and crossed the Rs 600 crore mark, respectively, during FY22.

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