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After Pine Labs & Mobikwik, now Visa & Lightbox backed B2B payment solutions firm PayMate planning an IPO

The firm’s founder Ajay Adiseshann is a technology entrepreneur . Beyond Visa & Lightbox, the firm’s other investors include Recruit Strategic LLC, Mayfair 101, BCCL, Mayfield Fund, Kleiner Perkins Caufield & Byers & Sherpalo Ventures

July 14, 2021 / 03:01 PM IST
A clutch of internet & tech firms are looking to make their debut on D-Street including Zomato, Paytm, Nykaa, Policybazaar, Mobikwik and others.

A clutch of internet & tech firms are looking to make their debut on D-Street including Zomato, Paytm, Nykaa, Policybazaar, Mobikwik and others.


Digital payment giant Visa and Lightbox backed PayMate, a leading B2B payment solutions player for the Enterprise and small and medium enterprises (SME) segments, is evaluating the launch of a domestic IPO (initial public offering) in FY22, multiple industry sources with knowledge of the matter told Moneycontrol.

“The pandemic has accelerated digital adoption in the payments segment and Mumbai based PayMate has initiated preliminary discussions with investment banks for a potential listing and pitches are going on. These are early days and there is no clarity yet on the size of the proposed IPO,” said one of the individuals cited above.

“The IPO will unlock value for the firm, help to raise growth capital and also facilitate a partial exit for its multiple investors,” a second individual said.

Beyond Visa & Lightbox, the firm’s other investors include Recruit Strategic LLC, Mayfair 101, BCCL, Mayfield Fund, Kleiner Perkins Caufield & Byers & Sherpalo Ventures.

Both the individuals above spoke to Moneycontrol on the condition of anonymity.

Close

Moneycontrol is awaiting the response of an email query sent to PayMate and Visa and has sent reminders. We have not heard from both parties at the time of publishing this article.

A clutch of internet & tech firms are looking to make their debut on D-Street including Zomato, Paytm, Nykaa, Policybazaar, Mobikwik and others.

The digital payments space is witnessing increased deal activity in the COVID-19 era.

On July 5, Moneycontrol was the first to report that PayU backed by top global tech investor Naspers was in talks to acquire payment gateway firm Billdesk. Billdesk counts General Atlantic and Temasek as its investors.

On the same day, Moneycontrol reported that Paytm would file papers with Sebi shortly after its EGM on 12th July for a $2.3 bn IPO, targeting a valuation of $25 bn - $26 bn.

Digital payments peer Pine Labs which is backed by Mastercard is also eyeing a public listing, its CEO Amrish Rau told Moneycontrol in an interview in April. Recently, the firm raised $315 mn in a fundraise, valuing the firm at $3bn.

Mobikwik, another payments firm, also filed papers recently with market regulator Sebi to raise Rs 1,900 crores via an IPO.

KNOW MORE ABOUT PAYMATE

According to its website, PayMate is a leader in B2B payments for Enterprise and SME across supply chains. The firm’s founder Ajay Adiseshann is a technology entrepreneur who founded and grew Coruscant Tec, a leader in mobile content that was sold to a listed media company. Earlier, Adiseshann also founded Webresource, a web development company.

The firm works with leading Visa commercial card-issuing banks to facilitate credit for both payables and receivables across supply chains moving traditional cash, cheque and EFT to card streams with several built-in risk-mitigating benefits for banks and extended days payables for buyers.

In March, PayMate announced that its full-stack payment automation platform had processed over $130 million GST payments monthly during the pandemic year through bank-issued Visa commercial cards. These transactions are projected to grow over $250 million being processed every month in the upcoming fiscal year ending March 2022, the firm added. PayMate’s GST payment automation feature allows businesses to make bulk payments towards challans generated on the GST portal across multiple GSTINs.

Its Platform features include Procure to Pay automation, credit evaluation, discount marketplace along with APIs for integration into existing accounts/ERP for minimal friction-based deployment. It is cloud-based and accessible across all form factors, the firm’s website says. PayMate has a presence in South Asia (India) and UAE and is actively expanding across Central Europe, Middle East and Africa.

THE FINTECH OPPORTUNITY

“India itself is pegged at $4 trillion from a commercial payments market standpoint and we believe 15 percent of that will be addressable market from our standpoint of commercial cards being used for making your payables and receivables. That’s the size and scope of the market and we’re just scratching the surface and there’s a lot of headroom to grow in India itself,” PayMate founder Adiseshann said in a recent interview to ET BFSI.

According to a blog posted on the firm’s website in January by Adiseshann, “A recent Cisco India SMB Digital Maturity Study 2020 highlights that 68 percent of Indian SMBs seek to digitally transform to introduce new products and services, differentiate themselves from the competition and grow while 60 percent recognise that competition is transforming and they must keep pace.”

“The study also states that digitalisation of small and medium businesses (SMBs) could add up to US $216 billion to India’s GDP by 2024 thereby contributing to the country’s economic recovery post-COVID-19,” the blog added.
Ashwin Mohan
first published: Jul 14, 2021 02:04 pm

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