[Funding alert] GrayQuest raises $1.2M in pre-Series A led by Foundation Holdings

GrayQuest , a Mumbai-based education-focused fintech startup, raised $1.2 million in a Pre-Series A funding round led by Foundation Holdings to increase access to affordable education in India.

The Mahansaria Family Office, Jeejeebhoy Family Office, Ambit Capital Founder Ashok Wadhwa’s Family Office, fintech lending company SMECorner Founder Samir Bhatia, and angel investor Rohit Dhoot, among others, also participated in the round.

GrayQuest Founder and CEO Rishab Mehta said, “The average Indian household spends nearly 24 percent 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.”

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At present, GrayQuest is enabling over 250,000 children to access education affordably while also becoming a strong source of liquidity and fee collection support for its partner institutions. Its monthly payment plan combines a credit, insurance, and a rewards offering for parents paying annual fees to its partner educational institutions.

Founded by Rishab Mehta in 2017, GrayQuest enables parents to pay their annual education fees in up to 12 monthly installments – without incurring any extra cost – instead of paying it to their educational institution in two-three bulk instalments. Additionally, parents and students paying through GrayQuest get access to India’s first student-focused privilege programme and complimentary insurance protection for their lifetime education fees.

Aakash Sachdev, Managing Director of Foundation Holdings, said,

“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.”

According to ResearchAndMarkets.com, India holds an important place in the global education industry with around 1.8 million K-12 schools and a learner base of 250 million. The National Education Policy (NEP) 2020, which was recently approved by the Union Cabinet, has also proposed a lot of progressive and uplifting changes in the Indian education system.