Bengaluru-based B2C credit management platform CheQ has recently secured $4.5 million (Rs 35 crore) in an extended seed round from a mix of new and existing investors. The funding, after an 18-month gap, underscores investors’ confidence in CheQ’s growth potential.
According to regulatory filings accessed from the Registrar of Companies (RoC), the company issued 12,952 Seed1 cumulative convertible preference shares at an issue price of Rs 26,989 each, raising the amount above.
Significant investors in this round include 3one4 Capital, with an investment of Rs 12.49 crore; Venture Highway Fund, with Rs 6.24 crore; and Multiply Ventures, with Rs 2.08 crore. Individual investors such as Lloyd Dizon Balajadia, Madhav Prakash Sehth, Vishal Gupta, and Deepk Tuli collectively contributed Rs 14.2 crore.
CheQ plans to utilize these funds for growth, expansion, marketing, and general corporate purposes, as its board outlines.
After this round, 3one4 Capital will hold 10.95% of the company, Venture Highway will hold 11.45%, and Multiply Ventures will hold 2.49%. These figures exclude employee stock options and other components of the firm’s cap table.
Founded in 2022 by Aditya Soni, CheQ offers a platform that simplifies the discovery and management of all credit products. It enables users to pay credit card bills and EMIs in one place.
This funding round adds to CheQ’s total raise of $15 million, which includes its $10 million seed round led by Venture Highway and 3one4 Capital in June 2022. Despite being a pre-revenue stage firm, CheQ reported a revenue of Rs 2 crore during the fiscal year ended March 2023, with losses amounting to Rs 19.4 crore over the same period.
