Fintech Startup CheQ Secures Additional $2.2 Million in Extended Seed Round

• ByStartupStory     |    June 24, 2024

CheQ, a credit card bill payment management platform, has successfully raised an additional Rs 18.5 crore (approximately $2.2 million) in its extended seed round. This funding marks the second tranche of the round for the Bengaluru-based startup as reported by Entrackr.

This new tranche follows closely on the heels of a $4.5 million extended series round reported by Entrackr last month. According to regulatory filings accessed from the Registrar of Companies (RoC), the board at CheQ has passed a resolution to allot 6,855 Seed 1 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 26,988.91 each, amounting to Rs 18.50 crore.

The investment saw participation from notable investors including Lloyd Dizon and Zenaida Dizon Balajadia, who each invested Rs 4.16 crore. Sherpalo LLC, a venture by Ram Shriram, contributed Rs 8.32 crore, while Hitesh Gupta and Amit Lakhotia invested Rs 10 lakhs and Rs 25 lakhs respectively.

According to the company’s filings, the newly acquired funds will be directed towards growth, expansion, marketing, and general corporate purposes as decided by the board.

As per startup data intelligence platform TheKredible, CheQ’s valuation stands at around Rs 460 crore or $55.4 million (post-money) following this latest funding round.

Founded in 2022 by Aditya Soni, CheQ aims to simplify the discovery and management of all credit products for customers, allowing them to pay their credit card bills and EMIs on a single platform. To date, the startup has raised over $17 million, including a $10 million seed round led by Venture Highway and 3one4 Capital in June 2022.

Despite being in a pre-revenue stage, CheQ reported a revenue of Rs 2 crore during the fiscal year ending March 2023, with losses amounting to Rs 19.4 crore during the same period.

CheQ faces competition from fintech unicorn CRED, which has raised around $1 billion and was valued at $6.4 billion in its last funding round. According to TheKredible, CRED posted Rs 1,400 crore in revenue with a loss of Rs 1,347 crore during FY23.

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