Digital payment giant Visa and Lightbox backed PayMate India, a leading B2B payment solutions player for the Enterprise and small and medium enterprises (SME) segments, has filed a draft red herring prospectus with the Securities Exchange Board of India to raise around Rs 1500 crore via an initial public offering.
The IPO comprises a fresh issue of Rs 1125 crore and an offer of sale of up to Rs 375 crore from its existing shareholders and promoters.
The OFS consists of up to Rs 135 crore by its promoter Ajay Adiseshan, up to Rs 3.29 crore by Vishvanathan Subramanian, up to Rs 127.38 crore by Lightbox Ventures I, up to Rs 15.66 crore by Mayfield FVCI Ltd, up to Rs 2.74 crore by RSP India Fund LLC.
Beyond Visa & Lightbox, the firm’s other investors include Recruit Strategic LLC, Mayfair 101, BCCL, Mayfield Fund, Kleiner Perkins Caufield & Byers & Sherpalo Ventures.
Moneycontrol had first reported on July 14, the IPO plans of Lightbox Ventures and Mayfield backed b2b payments firm Paymate.
The proceeds from the issue worth Rs 77 crore will be used for investment for expanding its business into new geographies, Rs 228 crore will be used for pursuing inorganic initiatives and Rs 689 crore will be used for placing cash as collateral with its financial institution partners to improve its margins.
ICICI Securities, HSBC Securities, Capital Markets India, JM Financial, and SBI Capital Markets are the lead managers of the issue.
PayMate is a leader in B2B payments for enterprises and SMEs 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, Adiseshan also founded Web resource, 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.
As of December 31, 2021, the firm had 49,953 customers, of which 480 were Enterprise Customers and 49,473 were small and medium enterprises that subscribed for basic plans on its platform (SME Customers). It had a transaction processing volume (TPV) of Rs48400.50 crore in the nine-month ended 31 December 2021.
The firm launched PayMate App in June 2020 and since then its download and registration of 47203 customers as of December 2021.
For the fiscal year 2021, revenue was at Rs 348.40 crore versus Rs 216.14 crore a year ago. Net loss for the year stood at Rs 28.11 crore against Rs 27.77 crore last year. For the nine-month ended December 2021, revenue was at Rs 843.44 crore while the loss for the period at Rs 42.78 crore.
Its Platform features include Procure to Pay automation, credit evaluation, and 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, the Middle East, and Africa.