In its extended seed round, new and existing investors contributed Rs 35 crore, or $4.2 million, to the B2C credit management platform CheQ. After an 18-month pause, the Bengaluru-based company received funding.
The regulatory filing obtained from the Registrar of Companies (RoC) indicates that the board of CheQ has approved a special resolution to issue 12,952 Seed1 cumulative convertible preference shares at an issue price of Rs 26,989 apiece in order to raise Rs 35 crore.
While Multiply Ventures and Venture Highway Fund contributed Rs 2.08 crore and Rs 6.24 crore, respectively, 3one4 Capital invested Rs 12.49 crore. The total amount invested by individual investors, including Lloyd Dizon Balajadia, Madhav Prakash Sehth, Vishal Gupta, and Deepk Tuli, is Rs 14.2 crore.
According to documents, the company will use these funds for general corporate purposes, marketing, growth, and expansion at the board’s discretion.
After the new funding, 3one4 Capital now owns 10.95% of the business, with Venture Highway and Multiply Ventures controlling 11.45% and 2.49%, respectively. It is important to note that, when the ESOP pool component is taken into account, these holdings do not include employee stock options or the company’s cap table.
The company is reportedly valued at approximately Rs 451 crore, or $55 million (post-money), in the latest funding round, according to the media.
CheQ was founded in 2022 by Aditya Soni and offers a single platform for paying credit card bills and EMIs. It also helps customers find and manage all credit products more easily.
Up until now, the startup has raised $15 million, which includes a $10 million seed round in June 2022 led by Venture Highway and 3one4 Capital. CheQ’s fiscal year ended in March 2023, with only Rs 2 crore in revenue, meaning that it remained a pre-revenue stage firm. Nonetheless, the three-year-old company’s losses during that time totaled Rs 19.4 crore.
CheQ faces competition from fintech unicorn CRED, which has raised about $1 billion in funding to date and was valued at $6.4 billion during its most recent fundraising.
