GrayQuest Raises ₹80 Crore in Series B to Expand Education Payments Platform

• ByStartupStory     |    February 14, 2025

Mumbai-based fintech firm GrayQuest has raised ₹80 crore ($9.3 million) in a Series B funding round, securing investment from IIFL Fintech Fund, Claypond Capital (the family office of Dr. Ranjan Pai), and existing backer Pravega Ventures. The fresh capital will be used to enhance its technology platform, scale its distribution network, and strengthen its presence across educational institutions in India.

Founded seven years ago by Rishab Mehta, GrayQuest offers a unified digital payments platform designed to simplify and modernize fee collection for schools, colleges, and universities. The company provides flexible payment solutions, including a monthly installment plan for tuition fees at no extra cost, making it easier for families to manage educational expenses. Over 6,500 institutions across the K-12 and higher education segments currently use GrayQuest to streamline their fee payments.

With India’s education sector processing over $120 billion in fee payments annually, investors see GrayQuest as a key player in digitizing this massive, yet traditionally cash-heavy, ecosystem. “India’s education ecosystem is one of the largest in the world, yet digital payment adoption has lagged behind other industries. We were impressed with GrayQuest’s leadership in this space and the impact its platform is already having on thousands of institutions,”said Mehekka Oberoi, Fund Manager, IIFL Fintech Fund.

The funding also signals strong confidence in embedded finance solutions tailored for education. “GrayQuest is transforming education payments by making them more flexible and accessible. As embedded finance grows in India, GrayQuest is well-positioned to lead the way in reshaping how families and institutions handle fee payments,” said a spokesperson from Pravega Ventures.

For GrayQuest, this investment is a validation of its vision. “We’ve come a long way from pitching a radically new way of collecting fees to becoming a must-have solution for institutions across India,” said Rishab Mehta, Founder & CEO of GrayQuest. “We are grateful for the trust shown by some of India’s most respected investors. Our focus remains on building innovative solutions that will positively impact the entire education ecosystem.”

Despite its rapid growth, GrayQuest remains in an expansion phase, with investments focused on scaling technology and distribution. For FY24, the company reported ₹17.93 crore in revenue but also a ₹36.8 crore loss, reflecting the costs associated with aggressive growth and market expansion.

The education financing sector has seen significant investor interest, with GrayQuest and its competitors—including Leap, Auxilo, Avanse Financial, Financepeer, Propelld, Mpower Financing, and Eduvanz—raising a combined $500 million over the past two years

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