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GrayQuest received Rs 53 Cr Series B funding from Pravega and IIFL

GrayQuest, a fintech startup specializing in education loans, is scheduled to raise Rs 53 crore ($6 million) in a Series B round led by Pravega Fund and IIFL Fintech Fund.

In order to raise Rs 53.57 crore, the GrayQuest board has decided to offer and issue 6,228 fully paid up and 1,530 partially paid-up Series B preference shares at an issue price of Rs 69,062 apiece.

In addition to the founder of the company, Rishab Sumer Mehta, who contributed shares valued at Rs 10.56 crore, Pravega Ventures and IIFL Fintech Fund each invested Rs 21.50 crore. The shares that Rishab was given have been partially paid for; the remaining sum will be needed when the board makes a decision.

According to the company’s regulatory filings, GrayQuest will use the additional funding to support its expansion plan and pay for necessary expenses.

According to a separate filing, the company has also expanded the size of its ESOP pool by adding 1,204 new options, making the total ESOP pool 5,718 options. GrayQuest’s ESOP pool is currently estimated by Entrackr to be worth $4.5 million.

The Mumbai-based startup raised $1.2 million in August 2020 for a pre-Series A round and $7 million in its Series A round back in March of last year.

The media reports that GrayQuest’s post-allotment valuation is approximately Rs 530 crore, or $64 million. It looks like the startup is still in the middle of its Series B round, and if it raises more money, its valuation might change.

After the infusion of new funds, IIFL Fintech Fund will own 4.07% of the business, and Pravega Ventures will own 10.94%. Rishab Sumer Mehta, the company’s founder, will own a sizeable 38.59% share in it.

Seventeen years old GrayQuest is a comprehensive fee collection platform designed for educational institutions that enables parents to pay their annual education fees in convenient, interest-free monthly installments.

Grayquest was recently chosen for the Co-Lab program, which Pravega Ventures and HDFC Bank started together. The startup declared operating revenue of Rs 8.76 crore and a loss of Rs 26.3 crore for the fiscal year that concluded in March 2023. It has not yet released the FY24 results.

 

 

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