B2B Payments Firm PayMate India Files to Go Public

Payments and service provider PayMate India has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India to raise funds through an initial public offering (IPO), according to a Livemint report.

The company wants a fresh issue of ₹1125 crore and offer-for-sale of ₹375 crore, the report said.

And up to 10% of the offer will remain available for allocation to retail individual bidders, with around 75% for qualified institutional buyers.

The proceeds will go toward new investments in new places, the company said in the report.

PayMate is a multi-payment category platform using vendor payments, statutory payments and utility payments, allowing for a “fully integrated” B2B payment stack.

It also reportedly allows consumers and vendors, suppliers, buyers, dealers and distributors to use commercial cards to make payments of direct taxes, utility payments and more.

PayMate India has said that it may be looking into a private placement of equity shares to aggregate up to ₹225 crore. If the placements are completed, the fresh issue size could also be reduced, per the report.

The report noted that PayMate has a partnership with Visa, with Visa cards making up 90% of commercial credit cards through the system as of the end of 2021. In addition, Visa holds shares in PayMate.

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PayMate has also recently been looking to raise $4 million, including its $2 million lead investment from Felicitas Equity Fund, along with additional funds from other places.

PayMate first got its investment from Visa in 2019, according to the report, along with Recruit Strategic Partners, Brand Capital and Mayfair 101.

Ajay Adisesehann, CEO of PayMate, said the company “works with large enterprises to facilitate seamless and real-time payments to vendors, and from customers.”

“It enables small and medium enterprises to manage their business, cash flow and payments from a cloud based platform. It also enables banks to provide mobile banking services to their customers,” he said, per the report.