Terms of the Issue

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• Issuer:   Progfin Private Limited

• Nature of Instrument: Senior, Secured, Unlisted, Rated, Redeemable, Non-Convertible Debenture

• Coupon: 11.25% p.a. Payable Monthly

• Maturity Date: Feb 17, 2026 (Tenor – 16 months)

• Face Value: 1 lakh

• Rating: CRISIL BBB/Stable

• Offered in Multiples of 10 lacs @ 13.00% Yield

• Guarantor: Corporate Guarantee to be provided by Desiderata Impact Ventures Private Limited (Parent Company)

• Step-Up Coupon—If the rating of the Debentures is downgraded below the current Rating, the Interest Rate shall be increased by 0.50% for each downgrade of 1 (one) notch from the rating.

• Security: Exclusive Charge via a deed of hypothecation over a specific asset portfolio of receivables with a minimum security cover of 1.1 times.

 

Financial Covenants:

 

• The issuer is to remain PAT positive every quarter at the standalone level and yearly at a consolidated level.

• Maintain the ratio of the Total Debt of the Issuer to the Tangible Net worth of the Issuer of not more than 4.00 times

• Maintain a Capital Adequacy Ratio of not less than 23% or such other higher threshold as may be prescribed by the RBI from time to time.

• (PAR 90 + Trailing 12 months Write-Offs) / Total AUM < 5%

• Net NPA not to exceed 3.00% of Gross Loan Portfolio

• Cumulative 12 months ALM not to be negative as per ALM filings with RBI.

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About the Company :

 

• Progfin is a Delhi based NBFC founded in 2017 by Mr Himanshu Chandra and Ms Pallavi Shrivastava. The company is a wholly owned subsidiary of Desiderata Impact Ventures Private Limited.

• Progcap is the digital lending platform for Progfin, through which company provides loans to distributors and vendors. Company offers Vendor Financing, which is Invoice Discounting for vendors purchasing directly from brands and Distributor financing, which is cash discount-based model of invoice discounting for direct buyers of brands.

• Company has corporate tie-ups with established and reputed brands in the industry which includes Samsung, LG, Hero, Mahindra, TVS, Haier, Voltas, Godrej, JSW, Murugappa, ACC and Raymond.

• Company is backed by Marquee investors including Sequoia, TigerGlobal, Google, Creation Investments Capital Management LLC, Beams Fintech Fund and Axis Capital Partners, where Sequoia, TiGerGlobal and Google together have approx 50% holding.

• Company offers supply chain financing via a short-term revolving credit line, carrying an average tenure of 3 months.

• Company’s average ticket size is INR 50 lakhs and granular loan book with 5 cr and above has been lent to 20 customers.

 

*PLEASE NOTE THAT THE ABOVE-MENTIONED RATES ARE INDICATIVE & SUBJECT TO MARKET FLUCTUATIONS. CONFIRM RATES AS WELL AS AVAILABILITY OF SECURITIES BEFORE FINALISING THE DEAL.

*DISCLAIMER: INVESTMENTS IN DEBT SECURITIES ARE SUBJECT TO RISKS. READ ALL THE OFFER RELATED DOCUMENTS CAREFULLY BEFORE INVESTING.