Progfin Pvt. Ltd. Mar '28 Corporate Bonds - INE0MYJ07211

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The rating of an issuer company reflects its past growth and performance. The rating increases when the company consistently performs well and decreases when it is not performing well.

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Low risk:

AAA, AA+, AA, AA-, A+, A, A-

Moderate risk

BBB+, BBB, BBB-, BB+, BB

High risk

BB-, B+, B, B-, C, D

The rating agency for this Bond is ICRA.

About

Progfin Private Limited (Progfin) is a Non-Banking Financial Company (NBFC) that provides anchor-led supply chain financing and working capital term loans to micro, small, and medium enterprise (MSME) retailers. Founded in FY2017 by Ms. Pallavi Shrivastava and Mr. Himanshu Chandra under Desiderata Impact Ventures Pvt. Ltd (DIV), Progcap originally operated as a digital lending platform and loan service provider (LSP) to banks, SFBs, and NBFCs. In September 2022, DIV acquired Hytone Holdings Pvt Ltd, renamed it Progfin Private Limited, and commenced direct NBFC lending operations in October 2022. Progfin is a wholly-owned subsidiary of DIV (backed by marquee investors including Peak XV/Sequoia, Tiger Global, GrowX, Creation Investments, and Google). Operating under the Progcap brand across industries such as FMCG, white goods, two-wheelers, and agri-inputs, the Progcap Group reported an Assets Under Management (AUM) of Rs. 2,120 crore as of September 30, 2025.;

Pros and Cons

Pros

Cons

Healthy Capitalisation Base Supported by Strong Institutional Investors: The Group maintains robust capital buffers with a consolidated net worth of Rs. 742 crore and a managed gearing of 2.3 times as of September 30, 2025, underpinned by Rs. 800 crore in equity capital raised since inception from prominent global investors like Peak XV, Tiger Global, Creation Investments, GrowX, and Google.

Controlled Credit Risk via Short Tenures and Prepayment Velocity: A major portion of the portfolio consists of anchor-led supply chain loans with short tenures of less than 90 days and high monthly prepayments (averaging ~66% in H1 FY2026), enabling rapid capital rotation and end-use control by disbursing directly to distributor or anchor accounts.

Diversifying Borrowing Base and Expanding Lender Network: The Group has established an adequate liability profile for its scale by building relationships with 12 banks (including 4 SFBs) and over 17 NBFCs, while diversifying into debt market instruments like Non-Convertible Debentures (NCDs) alongside term loans and working capital demand loans.

Significant Growth Potential in Underserved MSME Verticals: Operating across a network of over 31,500 active borrowers and 130 anchor partners, the Group addresses high-demand, underserved retail supply chains spanning FMCG, white goods, agri-inputs, two-wheelers, and emerging brands.

Controlled Current Asset Quality via Built-in Risk Mitigants: Portfolio delinquency levels remain controlled with a 90+ dpd of 1.6% as of September 30, 2025, supported by structural credit safeguards such as invoice backing, risk-sharing agreements, margin retention, stop supply, stock liquidation, and first loss default guarantees.

Progfin Pvt. Ltd. Mar '28

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