Incorporated in 2006, the Mumbai-based PayMate India is a payments and services provider that digitizes, automates and streamlines business to business (B2B) payments in supply chains.
PayMate is looking to raise Rs 1,500 through the primary route, which includes issuance of fresh equity shares worth Rs 1,125 crore. The remaining Rs 375 crore will consist of an offer for sale (OFS) by existing shareholders and promoters.
In the OFS, promoters including Ajay Adiseshan and Vishvanathan Subramanian will sell up to Rs 134.73 crore and 3.29 crore, respectively. Other institutional investors including Lightbox Ventures I, Mayfield FVCI, RSP India Fund, IPO Wealth Holdings will also offload some stakes.
The company has reserved 75 per cent of the allocation for the qualified institutional bidders (QIBs), whereas 15 per cent of shares are allocated to non-institutional buyers. Retail bidders will get the remaining 10 per cent shares.
The company, in consultation with the lead bankers, may consider a private placement aggregating up to Rs 225 crore. If such placement is completed, the fresh issue size will be reduced. The company will include a reservation of shares for the eligible shareholders of the company in the issue.
The proceeds from its fresh issue will be utilised for investment for expanding our business into new geographies, pursuing inorganic initiatives, cash as collateral with its financial institutions to improve its margins and general corporate purposes.
PayMate has developed from a consumer-facing to a B2B payments platform, with a customer base in a wide range of industries, including IT, FMCG, paints, financial services, cement, auto, travel and airline, media, manufacturing, and logistics.
The platform also allows consumers and their vendors, suppliers, buyers, dealers, and distributors to use commercial credit cards to make statutory payments of direct taxes and GST, as well as utility payments.
Visa has a partnership with PayMate. Visa cards accounted for more than 90 per cent of commercial credit cards handled through the systems as of December 31, 2021. Visa owns a 2.94 per cent stake in PayMate.
The brand launched its platform in the UAE in 2018 through PayMate LLC. It is also aiming to expand into other parts of Central Europe, Middle East and African region as well.
As of December 31, 2021, it had 49,953 customers, of which 480 were enterprise customers and 49,473 were small and medium enterprises which subscribed for basic plans on its platform.
PayMate’s revenue from operations increased 61.19 per cent to Rs 348.40 crore in the financial year 2020-21 from Rs 216.14 crore in the fiscal year 2019-20. However, its net loss widened to Rs 28.11 crore from Rs 27.77 crore during the period.
It reported a revenue of Rs 843.44 crore with a net loss of Rs 42.78 crore for the nine months ended December 31, 2021.
ICICI Securities, HSBC Securities and Capital Markets (India),
and Capital Markets are the book running lead managers, whereas Link Intime India is the registrar to the offer. The shares are proposed to be listed on BSE and NSE.