SUMMARY
- GrayQuest raised ₹53 crore ($6M) in Series B funding, led by Pravega Ventures and IIFL Fintech Fund.
- Founder Rishab Mehta holds a 38.59% stake, while Pravega and IIFL own 10.94% & 4.07%.
- Funds will support expansion, ESOP pool growth, and cover essential business expenses.
GrayQuest, a fintech firm specializing in education loans, has raised ₹53 crore ($6 million) in a Series B investment led by Pravega Ventures and IIFL Fintech Fund. After the latest round of funding, IIFL Fintech Fund will own 4.07% of the company, while Pravega Ventures will own 10.94%. The company’s founder, Rishab Sumer Mehta, will hold a large 38.59% stake in the business.
A resolution was passed by GrayQuest’s board of directors to offer and issue ₹53.57 crore worth of Series B preference shares, with 6,228 fully paid up and 1,530 partially paid up, at an issue price of ₹69,062 per share. Mehta has also contributed with shares valued at ₹10.56 crore, with investments of ₹21.50 crore from Pravega Ventures and IIFL Fintech Fund.
According to the company’s regulatory filings, the additional funding will support the expansion plan and pay for necessary expenses. The business has also expanded the size of its ESOP pool by adding 1,204 more options, making the total ESOP pool 5,718 options. The firm’s ESOP pool is now estimated to be worth $4.5 million, as reported by Entrackr.
GrayQuest, founded in 2017 by Rishab Sumer Mehta, is a Mumbai-based fintech company focused on simplifying educational fee payments. The platform enables families to pay school and university fees through flexible, interest-free monthly installments. Serving K-12 schools and higher education institutions, the firm offers a streamlined solution for fee collection, easing financial pressures on parents while enhancing institutional cash flow.
In March 2023, the firm raised $7 million in its Series A investment. In August of 2020, it raised $1.2 million in pre-Series A financing. Its post-allotment valuation is approximately ₹530 crore ($64 million). The business is expected to raise more money in the ongoing Series B round, which can cause its valuation to change, as per TheKredible.
The startup was recently chosen for the Co-Lab program, which Pravega Ventures and HDFC Bank started together. The company declared an operating income of ₹8.76 crore and a loss of ₹26.3 crore for the fiscal year that concluded in March 2023. It has not yet released the FY24 results.
