Key Highlights:

  • Fintech startup CheQ has raised $10 Mn in a seed round led by Venture Highway and 3one4 Capital.
  • With these funds, CheQ is targeting to launch its first product, a credit management platform and build a team.
  • As CheQ raises funds, India’s fintech is under pressure from RBI, which has limited what fintech can do with credit products.

Fintech startup CheQ has raised $10 Mn in a seed round led by Venture Highway and 3one4 Capital. Veda VC, Marshot Ventures, and Multiply Ventures have participated in the seed round of the startup.

The Bengaluru-based startup also has the backing of angel investors like Naveen Kukreja and Shailaz Nag who are the CEO of Paisabazaar and Dotpe respectively.

With these funds, CheQ is targeting to launch its first product, a credit management platform and build a team. It even plans to invest in technologies that will help it differentiate itself from its competitors. The startup will launch its platform within the next few months.

CheQ was founded in 2022 by Aditya Soni. Currently, it has a team of 30 people and targets to onboard up to 70 more people by the end of the year.

The startup aims to simplify consumers’ discovery and management of credit products, enabling them to make informed decisions on the matter.

The Founder said, Despite growing adoption and growth in India’s credit ecosystem, customer awareness remains low. There are different repayment cycles and charges and penalties involved with this, which leads to a range of bad experiences.

Additionally, he said, “We are developing a customer-centric platform that makes it easier to track, pay, and manage all the payments related to a customer’s credit health in one location,”.

He further said, “Investing in our company was a massive vote of confidence from the investors and further validated our hypothesis that there is a problem to be solved.”

The vice president at 3one4 Capital Nitya Agarwal said, “By solving for end-to-end credit management, CheQ is reimagining financial discipline for the masses. Because BNPL and credit penetration are on the rise in India, end-users are unaware of the various financial products they are signing up for. As CheQ builds a unified repayment platform, we’re thrilled to work with them to enable users to manage their credit better and in a disciplined manner.”

As CheQ raises funds, India’s fintech is under pressure from RBI, which has limited what fintech can do with credit products.

RBI notified about PPI-MD (Prepaid Payment Instruments-Master Directions) on June 20, prohibiting non-bank credit cards from being loaded with PPIs. In the absence of banks, fintech startups can’t issue credit with banks. Wallets like Paytm Postpaid and MobiKwik’s postpaid service, for example, can’t be used because of this notification.

In spite of the ambiguity in the notification and the industry’s expectation that RBI will clarify the issue, it is clear that RBI has questioned the business models of fintech startups.

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