Fintech startup GrayQuest raises $9.3 million to boost digital fee payments in Indian schools

GrayQuest, a Mumbai-based fintech firm focused on digital financial solutions for India’s education sector, has raised Rs 80 crore (about $9.3 million) in its latest Series B equity funding round.

The investment comes from IIFL Fintech Fund, Claypond Capital (the family office of Dr. Ranjan Pai) and existing backer Pravega Ventures. The company will use the fresh capital to upgrade its technology platform and expand its reach to educational institutions nationwide.

What does GrayQuest do?

Founded in 2017 by Rishab Mehta, GrayQuest has developed a unified payments platform that helps schools and colleges digitize fee collection. Its system offers students and parents multiple payment options, including an interest-free monthly installment plan for annual fees.

According to the company, more than 6,500 educational institutions across K-12 and higher education have embraced GrayQuest to streamline fee processing.

Rishab Mehta, Founder & CEO, GrayQuest, “We have had quite a journey from the initial days of pitching a radically new way of collecting fees at institutions to our solutions slowly becoming a must-have for educational institutions across the country. We are thankful for the trust and conviction shown by some of India’s most respected investors to partner with us in this journey as we continue to focus our efforts on building innovative solutions that will make a significant positive impact to the lives of our customers across the education ecosystem.”

Investors comment

Mehekka Oberoi, Fund Manager, IIFL Fintech Fund – “India’s education ecosystem is one of the world’s largest, with over $120B of education fees paid annually. However, there has been little innovation in recent decades, especially compared to similar ecosystems that have embraced digital payments. We were impressed with the category leadership and the impact GrayQuest solutions were having on some of India’s leading institutions across the country and are thrilled to partner with them on this journey.”

Spokesperson, Pravega Ventures, “GrayQuest is revolutionizing the education financing landscape, making it easier for families and institutions to manage payments with greater flexibility. We’re truly excited about the growing potential of embedded finance in India, and it’s exciting to see GrayQuest lead the way in transforming this sector.”