PayMate India, A B2B Service Provider, Filed DRHP With SEBI To Raise Rs 1500 Crore Via IPO

Paymate India Ltd, a leading B2B service provider has filed a draft red herring prospectus (DRHP) with the market regulator Securities Exchange Board of India (SEBI) to raise Rs 1500 crore through an initial public offering (IPO).

The IPO comprises a fresh issue of Rs 1125 crore and an offer of sale (OFS) of up to Rs 375 crore from its existing shareholders and promoters.

Promoters Ajay Adiseshan and Vishvanathan Subramanian, as well as investors Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC, and IPO Wealth Holdings, are selling shares in the OFS. Existing shareholders are also selling shares through this channel.

Employees who qualify for the offer can also make a reservation for a subscription. The promoter and promoter group currently own 66.70 per cent of the company, while public shareholders own the rest.
Recruit Strategic LLC, Mayfair 101, BCCL, Mayfield Fund, Kleiner Perkins Caufield & Byers, and Sherpalo Ventures are among the firm's other investors, in addition to Visa and Lightbox.

Proceeds from fresh issue worth Rs 77 crore will be utilised for investment in the expansion of business in new geographies, Rs 228 crore will be used to pursue inorganic initiatives, and Rs 689 crore will be used to place cash as collateral with its financial institution partners in order to boost profits.
ICICI Securities, Capital Markets India, HSBC Securities, JM Financial, and SBI Capital Markets are the lead managers of the issue.

The company had 49,953 customers as of December 31, 2021, with 480 Enterprise Customers and 49,473 small and medium businesses using its platform's basic plans (SME Customers). In the nine months ending December 31, 2021, it recorded a transaction processing volume (TPV) worth Rs 48400.50 crore.

About - Paymate India Ltd.

PayMate India Ltd, backed by Digital payment giant Visa and Lightbox, is a leading B2B payment solutions player for the Enterprise and small and medium enterprises (SME) segments headquartered in Mumbai, India.

PayMate App was launched in June 2020 by the company and since then it has registered download and registration of 47203 customers as of December 2021.

The company collaborates with leading Visa commercial card-issuing banks to support credit for both payables and receivables across supply chains, cheque, shifting traditional cash, and EFT to card streams with many risk-mitigation features for banks and extended days payables for buyers.

According to the company's website, it is cloud-based and available on all devices. PayMate is active in Central Europe, the Middle East, and Africa, and has a presence in South Asia (India) and the United Arab Emirates.