GrayQuest is an education-focused fintech startup that provides education loans to students. The startup announced its plan to secure 6 million USD from IIFL Fintech Fund and Pravega Fund in its series B funding round. The funding round saw the participation of various investors including individual investors. Pravega Ventures and IIFL Fintech Fund led the round with Rs 21.50 crore investment each followed by the founder Rishab Sumer Mehta with Rs 10.56 crore worth shares.
The startup plans to use these fresh proceeds to scale its operations, improve its services, enhance its platform, expand in the market, and meet general purposes. The board has approved a resolution to allot 6,228 fully paid-up and 1,530 partly paid-up series B preference shares at an issue price of Rs 69,062 each to raise Rs 53.57 crore. The company previously secured $7 million in its series A funding round and $1.2 million in pre-series A round in 2020. The startup provides fee payment solutions for k-12 universities and schools. The company enables parents to pay school fees in monthly installments.
The startup also increased its employee stock option plan pool size by adding 1,204 new stock options. Entrackr estimated the ESOP pool size of the firm to be around $4.5 million. After this round, the existing investor Pravega Ventures holds the largest external stake with 10.94 percent followed by IIFL Fintech Fund with 4.07 percent. The founders Rishab and Sumer Mehta hold the remaining 38.59 percent firm’s stake. Tracxn posted that the company has raised around $18.3 million across six rounds since its inception. The startup data intelligence platform, threkredible mentioned the post-allotment valuation of GrayQuest of Rs 530 crore.
The Fintech startup reported an operating revenue of Rs 8.76 crore in FY23. Meanwhile, the loss was around Rs 26.3 crore in the same duration. GrayQuest partners with various educational institutes to make the fee payment process easy. The platform offers services like insurance, rewards, automated debits, and memberships. The company aims to transform education-related loaning services locally and globally. The development came just after the education loaning sector saw increased investor interest. GrayQuest faces competition from other education financial services providers in this market such as Jodo, Anthem, and LEO1.
Conclusion :
The online fee payment solutions and service-providing startup, GrayQuest raised Rs 530 crore in its series B funding round from Pravega Fund and IIFL Fintech Fund. The startup offers an online platform to provide guardians to pay the school fee in monthly installments. The company claims to partner with educational institutes to make the fee payment procedure easy while offering services like insurance, memberships, and automated debits.
The board at the company passed a special resolution to allot series B preference shares to raise Rs 53.57 crore. The funding round was led by IIFL fintech fund and Pravega fund with Rs 21.50 crore each followed by Rishab Sumer Mehta’s Rs 10.56 crore worth shares. The startup has secured a total of $18.3 million to date.
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