GrayQuest Secures Rs 53 Crore in Series B Funding Co-Led by Pravega and IIFL

• ByStartupStory     |    September 20, 2024

fintech startup GrayQuest has announced the successful closure of its Series B funding round, raising Rs 53 crore (approximately $6 million). The round was co-led by Pravega Fund and IIFL Fintech Fund, both of which invested Rs 21.50 crore each. Founder Rishab Sumer Mehta also participated, contributing shares worth Rs 10.56 crore.

The board of GrayQuest has resolved to issue 6,228 fully paid and 1,530 partly paid Series B preference shares at an issue price of Rs 69,062 each. According to regulatory filings, the fresh capital will be utilized to support the startup’s expansion plans and meet financial requirements.

This news is first reported by Entrackr.

Growing Valuation and ESOP Pool

Following this round, GrayQuest’s estimated valuation stands at around Rs 530 crore (approximately $64 million). The company is reportedly in the process of raising additional funds, which may impact its valuation further. After the latest investment, Pravega Ventures will hold a 10.94% stake in GrayQuest, while IIFL Fintech Fund will own 4.07%. Mehta retains a significant 38.59% stake in the company.

Additionally, the Mumbai-based startup has increased its Employee Stock Option Plan (ESOP) pool by adding 1,204 new options, bringing the total to 5,718. Entrackr estimates the current value of GrayQuest’s ESOP pool at $4.5 million.

Innovative Fee Collection Solutions

GrayQuest, founded seven years ago, operates as an integrated fee collection platform for educational institutions, allowing parents to pay annual education fees in flexible monthly installments with zero interest. The startup was recently selected for the Co-Lab initiative, launched by HDFC Bank in collaboration with Pravega Ventures.

In the fiscal year ending March 2023, GrayQuest reported an operating revenue of Rs 8.76 crore but also recorded a loss of Rs 26.3 crore. The startup has yet to release its FY24 results.

According to data compiled by TheKredible, GrayQuest and its competitors—such as Leap, Auxilo, Avanse Financial, Financepeer, Propelld, Mpower Financing, and Eduvanz—have collectively secured approximately $500 million in funding over the past 24 months. In July, it was reported that Leap is in discussions to raise a new round at a unicorn valuation.

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