GrayQuest, a fintech company focused on creating value proposition for India’s education ecosystem, has raised $1.2 million in a Pre-Series A funding round to increase access to affordable education in India.
The round was led by global investment firm Foundation Holdings, with participation from several others including the Mahansaria Family Office, Jeejeebhoy Family Office, Ambit Capital founder Ashok Wadhwa’s Family Office, fintech company SMECorner founder Samir Bhatia, angel investor Rohit Dhoot among others.
Founded in 2017, GrayQuest enables parents and children to pay their education fees in super convenient monthly payments without incurring any extra cost. Additionally, it allows them to get access to GrayQuest’s student-focused privilege program and complimentary insurance protection for lifetime education fees.
GrayQuest claims to currently enabling over 250,000 students access to education in an affordable manner, while also ensuring a strong source of liquidity and fee collection support for its partner institutions. The Mumbai-based company is said to be currently working with over 400 educational institutions in the country.
Speaking about the company and its mission, Rishab Mehta, Founder and CEO, GrayQuest, said,
“The average Indian household spends nearly 24% of its total annual income on children’s education, placing financing of education fees top-of-mind for parents. GrayQuest aims to become the default method of paying education fees for the 100 million-plus learners studying in private sector education institutions.”
In just over 3 years, GrayQuest has matured its product offering to include a combination of credit, insurance and a rewards program bundled into one product to form the most amazing education fee payment experience for parents and students. According to Mehta, the company has seen increased demand from educational institutions following the nationwide lockdown caused by COVID-19. The latest Pre-Series A round is the company’s first external fundraise.
Aakash Sachdev, Managing Director, Foundation Holdings, commented on the investment saying,
“With more than $100 billion being spent on education by Indian households, we believe there is a massive opportunity for GrayQuest to continue to build tailored financial products that not only solves pain points, but provides a seamless and delightful offering to all stakeholders in India’s education ecosystem. Our investment in GrayQuest also reflects our commitment to building an omnichannel education ecosystem to augment the overall learner experience.”
Needless to mention, it is only last month Foundation Holdings has led a Rs 350 crore (around $46 million) Series D funding round in Toppr, one of India’s leading after-school learning platforms, to help the company further enhance its products and launch new initiatives.