Fintech Firm GrayQuest Raises Rs 53 Crore in Series B Round
Mumbai-based education loan-focused fintech startup GrayQuest has secured a funding boost of Rs 53 crore ($6 million) in its Series B round led by Pravega Fund and IIFL Fintech Fund. The Mumbai-based startup also received investment from its founder, Rishab Sumer Mehta, taking its valuation to around Rs 530 crore ($64 million).
As part of the round, GrayQuest issued 6,228 fully paid-up and 1,530 partly paid-up Series B preference shares at an issue price of Rs 69,062 each. Pravega Ventures and IIFL Fintech Fund each invested Rs 21.50 crore, while Mehta participated with shares worth Rs 10.56 crore. The new funds will be utilized to support the company’s expansion plans and meet its financial requirements.
With this fresh funding, Pravega Ventures will hold a 10.94% stake in GrayQuest, while IIFL Fintech Fund will own 4.07%. Mehta will command a 38.59% stake in the company. The startup has also increased its ESOP pool by 1,204 options, taking the total options to 5,718, with an estimated value of $4.5 million.
GrayQuest had previously raised $7 million in its Series A round in March last year and $1.2 million in its pre-Series A round in August 2020. The company is an integrated fee collection platform for educational institutions, enabling parents to pay annual education fees in flexible monthly installments with zero interest.
In related news, GrayQuest was recently selected for the Co-Lab initiative, a collaboration between HDFC Bank and Pravega Ventures. The startup reported an operating revenue of Rs 8.76 crore with a loss of Rs 26.3 crore for the fiscal year ending in March 2023. It has yet to publish its FY24 results.
The education loan space has seen significant funding over the past 24 months, with GrayQuest and its competitors collectively securing approximately $500 million. Leap, one of the competitors, is reportedly in talks to raise a new round at a unicorn valuation.
