**Progcap Launches New SaaS Platform to Digitize Supply Chains and Offer Embedded Credit**
Progcap, a fintech company dedicated to supporting small businesses, is launching a new vertical aimed at digitizing supply chains and providing on-the-spot credit solutions. The company is developing a comprehensive software-as-a-service (SaaS) platform tailored for brands, distributors, and retailers, transitioning from a focus solely on lending to incorporating embedded finance as an additional revenue stream. Co-founders Pallavi Shrivastava and Himanshu Chandra shared insights on this strategic expansion.
Chandra highlighted the disparity in technology access, stating, “Large corporates have platforms like Salesforce, but the actual sales process remains largely analog. By enabling immediate order placement and payment initiation, we can enhance conversion rates. Smaller brands and distributors often lack access to such technology.” Progcap’s new vertical aims to fully digitize the supply chain and is already operational with over 40 companies. The platform will facilitate embedded credit, allowing users to secure loans directly at the point of sale, eliminating the need to visit a bank.
“We aspire to be the operating system for the ecosystems of brands, distributors, and retailers,” Shrivastava emphasized. This initiative aligns with a broader trend among Indian businesses, such as Zepto’s Atom and Big Basket’s BB Matrix, which are also launching SaaS verticals to diversify their revenue streams.
Currently, Progcap’s SaaS platform offers credit exclusively through Progfin, its non-banking finance company. The company plans to onboard over 200 brands and aims to extend the platform to other banks and financial institutions by the end of the year. The founders anticipate that revenue from the SaaS and embedded credit vertical will contribute 10-15% of total revenue over the next two to three years, while lending will remain the primary business focus.
Chandra noted that the new platform significantly reduces customer acquisition costs. “When transactions are initiated on our platform, there’s a high likelihood that we’ll also be selected for financing,” he explained. This approach has also minimized the need for extensive field sales teams, as partner brand sales teams have effectively become onboarding channels.
As companies increasingly seek to automate processes and reduce costs for greater efficiency and profitability, Progcap has seen its operational revenue nearly double, rising to ₹139 crore in FY24 from ₹71 crore in FY23, while narrowing its losses to ₹46 crore from ₹49 crore. The company, founded in 2017 and valued at over $600 million, derives 95% of its revenue from lending to micro and small businesses. Within the SaaS platform, revenue will be generated through subscription fees charged to brands and distributors.
In conclusion, Progcap’s innovative approach to digitizing supply chains and offering embedded credit positions it as a key player in the fintech landscape, promising to enhance operational efficiency for small businesses and drive future growth.
**FAQ**
**What is Progcap’s new SaaS platform designed to do?**
Progcap’s new SaaS platform aims to digitize supply chains for brands, distributors, and retailers while providing on-the-spot credit solutions, enhancing efficiency and accessibility in the sales process.
