Series A Funding of Rs 56 Crore Secured by Fintech Startup GrayQuest

• ByStartup Story Team     |    March 10, 2023

GrayQuest, a startup that collaborates with educational institutions to provide monthly fee payment options, has announced raising Rs 56 crore (approximately $7 million) in its Series A funding round. Pravega Ventures led the round, and family investors, including Weizmann Group, Telama Family Office, and Apurva Parekh from the Pidilite Family Office, also participated. Other investors who took part in the funding round included Kunal Shah, founder of Cred; Anupam Mittal, founder of Shaadi.com; Sujeet Kumar, founder of Udaan, among others.

GrayQuest has received investment from returning investors, including the family offices of Ashok Wadhwa, founder of Ambit Capital, and Yogesh Mahansaria, managing director of Mahansaria Tyres. The startup, which manages fee payments for partner educational institutions, has a team of 200 employees in Mumbai and Bengaluru. GrayQuest’s client list includes Podar International School, Ryan Group of Institutions, Vibgyor group of Schools, Delhi Public School, Narayana Group of Schools, BITS Pilani, Sharda University, Shiv Nadar University, and Amity University. It is also onboarding digital edtech companies, such as UpGrad.

 

GrayQuest plans to enter the education loans segment and will use the newly raised funds to improve its product offerings and expand its reach across the education ecosystem, according to CEO Rishab Mehta. While the company operates throughout India, 60% of its revenue currently comes from the South and West regions. GrayQuest’s revenue grew fourfold in 2021, tripled in 2022, and is expected to triple again in 2023, Mehta stated, without disclosing specific figures.

GrayQuest was founded by Rishab Mehta in 2017 and remained self-funded until 2020. The startup provides educational institutions with a consolidated payment platform to streamline and enhance fee collection through digital means. GrayQuest has collaborated with more than 5,000 schools, universities, and coaching centres, catering to nearly three million students across India.

Rishab Mehta, CEO of GrayQuest, stated that the startup’s data across various groups indicates that Indian families spend over 20% of their annual household income on education fees for their children, covering schools and higher education. GrayQuest’s range of technology solutions and payment options have delivered significant benefits for both parents and educational institutions, according to Mehta. The education ecosystem in India is one of the world’s largest, with around $100 billion paid annually in education fees, according to Vinay Menon, co-founder of Pravega Ventures.

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