GrayQuest has closed its Series B funding round, raising Rs 53 crore (approximately 6 million dollars). The round was co-led by Pravega Fund and IIFL Fintech Fund, each investing Rs 21.50 crore. Founder Rishab Sumer Mehta also participated in the round, contributing shares worth Rs 10.56 crore.
The GrayQuest board has approved the issuance of 6,228 fully paid and 1,530 partly paid Series B preference shares at an issue price of Rs 69,062 each. Regulatory filings indicate that the fresh capital will be directed towards the startup’s expansion plans and meeting financial needs.
Following this funding round, GrayQuest’s estimated valuation has reached approximately Rs 530 crore (64 million dollars). The company is reportedly in the process of securing additional funds, which could further influence its valuation. After the latest investment, Pravega Ventures will hold a 10.94 per cent stake, while IIFL Fintech Fund will own 4.07 per cent. Mehta maintains a significant 38.59 per cent stake in the company.
The Mumbai-based startup has also expanded its Employee Stock Option Plan (ESOP) pool by adding 1,204 new options, bringing the total to 5,718. The current value of GrayQuest’s ESOP pool is estimated at 4.5 million dollars.
Founded seven years ago, GrayQuest offers an integrated fee collection platform for educational institutions, allowing parents to pay annual school fees in flexible, zero-interest monthly installments. The startup was recently selected for the Co-Lab initiative, a collaboration between HDFC Bank and 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 company has yet to release its FY24 results.