Peak XV and Tiger Global backed fintech firm Progcap delivered strong growth in FY25, nearly doubling its operating revenue while sharply reducing losses, bringing the company close to breakeven.
According to its filings with the Registrar of Companies, Progcap’s revenue from operations rose 93% year-on-year to ₹268 crore in the fiscal year ended March 2025, compared to ₹139 crore in FY24.
Revenue Growth Outpaces Expenses
Founded to bridge the credit gap for underserved micro and small enterprises (MSMEs), Progcap digitises supply chains and facilitates debt capital access for last-mile retailers. Income from these financing services remained its sole operating revenue stream.
The company also earned ₹10 crore from non-operating sources, including interest income and gains on investments, taking total income to ₹278 crore in FY25 from ₹159 crore in FY24.
On the cost front, employee benefit expenses accounted for 45% of total expenditure and remained largely stable at ₹126 crore. However, finance costs surged over fourfold to ₹91 crore from ₹22.5 crore, reflecting the scale-up of its lending operations. Write-offs increased to ₹24.5 crore, while legal expenses rose to ₹6.5 crore.
Overall, total expenditure grew 37% to ₹279 crore in FY25 from ₹203 crore in the previous year.
Near Breakeven with Positive EBITDA
Despite higher finance costs, revenue growth significantly outpaced expense expansion, enabling Progcap to reduce its net loss by 87% to ₹6 crore in FY25 from ₹46 crore in FY24.
The company reported a positive EBITDA of ₹75 crore with an EBITDA margin of 27.99%. Its return on capital employed (ROCE) stood at 7.40%.
On a unit economics basis, Progcap spent ₹1.04 to earn one rupee of operating revenue, improving substantially from ₹1.46 in FY24.
As of March 2025, the Gurugram-based firm reported cash and bank balances of ₹207 crore, with total current assets rising to ₹1,799 crore.
Strategic Shift and Competitive Positioning
Progcap’s transition from a capital light marketplace model to operating its own NBFC has strengthened its lending capabilities while increasing capital requirements. The move appears to be yielding results as the firm builds specialised products such as “credit on tap” for Tier II and III retailers.
Backed by Peak XV, Tiger Global, Creation Investments, and GrowX Ventures, Progcap has raised around $111 million to date. Its co-founders collectively hold a 23.41% stake.
With losses narrowing and profitability within reach, Progcap could emerge as a strong IPO candidate if momentum continues into FY26.
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