Progcap Nears Profitability as Revenue Jumps 93% to Rs 268 Cr and Losses Shrink 87%

Progcap, the Peak XV and Tiger Global backed supply chain fintech, has delivered one of the strongest financial turnarounds in India’s MSME lending ecosystem. In FY25, the Gurugram based company nearly doubled its operating revenue to Rs 268 crore while slashing losses by 87% to just Rs 6 crore. With a positive EBITDA of Rs 75 crore and margins nearing 28%, Progcap is now within striking distance of full profitability. The company’s transition to its own NBFC model, combined with deeper penetration into underserved Tier 2 and Tier 3 retailers, is driving both scale and operating efficiency.

Here are the key financial and strategic highlights that define Progcap’s FY25 performance.

1. Revenue Growth Accelerates to Breakout Levels

Progcap’s revenue from operations surged 93% to Rs 268 crore in FY25, up from Rs 139 crore in FY24. Including interest income and investment gains of Rs 10 crore, total income reached Rs 278 crore. This sharp growth reflects strong demand for supply chain financing solutions among small retailers and distributors. Progcap’s platform, which digitizes supply chains and enables credit access, continues to scale rapidly as MSME digitization expands across India.

2. Losses Fall Dramatically as Profitability Nears

The company reduced its net loss by 87%, from Rs 46 crore in FY24 to just Rs 6 crore in FY25. More importantly, Progcap reported a positive EBITDA of Rs 75 crore, with a healthy EBITDA margin of 27.99%. This indicates strong core operating profitability and suggests that full net profitability could be achieved as early as FY26.

3. Operating Efficiency Improves Significantly

Progcap’s cost efficiency improved materially. The company spent Rs 1.04 to earn every rupee in FY25, compared to Rs 1.46 in FY24. This sharp improvement highlights stronger unit economics and better operating leverage as revenue scaled faster than expenses.

4. Expenses Rise Moderately Despite Lending Expansion

Metric	FY24	FY25	Change
Total Expenses	Rs 203 Cr	Rs 279 Cr	+37%
Employee Costs	Rs 124 Cr	Rs 126 Cr	+2%
Finance Costs	Rs 22.5 Cr	Rs 91 Cr	+304%
Write offs	Rs 15 Cr	Rs 24.5 Cr	+63%

While total expenses increased 37%, this was significantly slower than revenue growth. Finance costs rose sharply due to increased lending through Progcap’s NBFC arm, reflecting its shift toward a capital-intensive lending model.

5. Strong Balance Sheet and Liquidity Position

Progcap reported cash and bank balances of Rs 207 crore and current assets of Rs 1,799 crore at the end of FY25. Its Return on Capital Employed stood at 7.40%, reflecting improving capital productivity as the lending business scales.

6. Strategic Shift to NBFC Model Unlocks Growth

Progcap’s transition from a marketplace model to operating its own NBFC has been a key growth driver. While this increased capital requirements and finance costs, it enabled greater control over lending, higher margins, and proprietary credit products such as Credit on Tap. This shift has helped Progcap build a strong competitive moat in MSME supply chain financing.

7. IPO Potential Strengthens as Financials Improve

With $111 million raised from investors including Peak XV, Tiger Global, Creation Investments, and GrowX Ventures, Progcap has strong institutional backing. Co-founders Pallavi Shrivastava and Himanshu Chandra hold a combined 23.41% stake. As the company approaches profitability and continues scaling efficiently, Progcap is emerging as a strong IPO candidate in India’s fintech sector.

Progcap’s FY25 performance marks a clear inflection point. Rapid revenue growth, near profitability, and improving efficiency signal that the company is transitioning from a high growth fintech to a financially sustainable lending platform. If this trajectory continues, FY26 could mark Progcap’s first profitable year and potentially set the stage for a public market debut.