GrayQuest, a fintech startup focused on education loans, has raised Rs. 80 crore ($9.3 million) in its Series B equity funding round. The investors include IIFL Fintech Fund, Claypond Capital (family office of Ranjan Pai), and existing investor Pravega Ventures.

Previously, the Mumbai-based startup raised $7 million in its Series A round in March 2024 and $1.2 million in a Pre-Series A round in August 2020.

The new funding will be used to improve GrayQuest’s technology platform and scale its distribution to educational institutions across India.

Founded seven years ago, GrayQuest offers multiple tailored payment options for students and parents, including a monthly plan for annual education fees with no extra charges. The platform is currently used by over 6,500 leading educational institutions, including universities and K-12 schools.

For FY 2024, GrayQuest reported a revenue of Rs. 17.93 crore and a loss of Rs. 36.8 crore, as per data from startup intelligence platform TheKredible.

Over the last 2 years, GrayQuest and its competitors, including Leap, Auxilo, Avanse Financial, Financepeer, Propelld, Mpower Financing, and Eduvanz, have collectively raised around $500 million in funding.

Rishab Mehta, CEO of GrayQuest, explained, "The main goal of the company is to simplify and digitize the fee payment process, making it more efficient for educational institutions while also offering a convenient and easy way for parents to make payments."

At present, GrayQuest supports over 6,500 educational institutions, including schools, colleges, and universities, impacting around 5 million students. Notable clients include Podar International School, BITS Pilani, Narayana Group of Schools, and Amity University, among others.