Fintech Progcap offers collateral-free loans of Rs 10 lakh to women-led MSMEs

New Delhi: MSME-focused fintech Progcap on Tuesday said it has launched a programme to offer collateral-free loans of up to Rs 10 lakh to women-led small and medium enterprises in the next three years.

The fintech, which is backed by Peak XV (previously Sequoia Capital India), Google and Tiger Capital, among others, seeks to empower 10,000 women-led MSMEs in semi-urban and rural India by FY27, Progcap said in a statement.

"Progcap has introduced ProgShakti Development Program, wherein women entrepreneurs can access loans of up to Rs 10 lakh and get certified through capacity-building knowledge sessions helping them grow their businesses," it said.

Aligned with the government's 'Viksit Bharat' vision for 2047 and the goal of increasing women's workforce participation to 70 per cent, Progcap's initiative offers customised credit to women-led enterprises and eliminates the need for a male co-applicant while assessing the creditworthiness, Progcap said.

Founded by Pallavi Shrivastava and Himanshu Chandra, Progcap provides an end-to-end platform offering finance, technology and commerce solutions to MSMEs. It has facilitated over ($4 billion) financing, impacting over 100,000 customers.

Progcap also plans to conduct over 100 workshops across India, offering training in business management and financial planning.

Co-founder Pallavi Shrivastava said that over the next two years, Progcap aims to increase the share of women-led businesses in its portfolio from the current sub-20 per cent to 30 per cent.

"With the launch of ProgShakti, our goal is to ensure more women step forward as real business operators by providing tailored credit solutions, equipping them with the business knowledge, skills, and capacity-building support needed to sustain and grow their enterprises," Shrivastava said.