Bengaluru-based fintech startup CheQ, a platform specializing in credit card bill payment management, has successfully secured an additional Rs 18.5 crore (approximately $2.2 million) in its extended seed round. This funding marks the second tranche for the company, following a $4.5 million round reported last month.
The latest capital injection was confirmed through regulatory filings, revealing that CheQ’s board approved the allocation of 6,855 Seed 1 Compulsorily Convertible Preference Shares (CCPS) at an issue price of Rs 26,988.91 each. This move brought in Rs 18.50 crore in total.
Key investors in this tranche include Lloyd Dizon and Zenaida Dizon Balajadia, each contributing Rs 4.16 crore, and Sherpalo LLC, an investment venture by Ram Shriram, with Rs 8.32 crore. Additionally, Hitesh Gupta and Amit Lakhotia participated with Rs 10 lakhs and Rs 25 lakhs respectively.
Founded in 2022 by Aditya Soni, CheQ aims to streamline the management of credit products, enabling users to pay their credit card bills and EMIs on a single platform. The company plans to utilize the newly raised funds for growth, expansion, marketing, and other corporate purposes as decided by its board.
To date, CheQ has raised over $17 million, including a notable $10 million seed round in June 2022 led by Venture Highway and 3one4 Capital. Despite its substantial fundraising efforts, CheQ remains in its pre-revenue stage, reporting a revenue of only Rs 2 crore for the fiscal year ending March 2023, with losses amounting to Rs 19.4 crore.
CheQ faces competition from established players like CRED, a fintech unicorn that has raised around $1 billion and was valued at $6.4 billion in its most recent funding round. Despite the competitive landscape, CheQ’s recent funding round indicates strong investor confidence in its potential for growth and market penetration.
