PayMate, a prominent player in the B2B digital payment sector, is set to raise approximately $30 million (Rs 261 crore) from Crimson Ventures. This marks the company’s first equity round of the year, reflecting its ongoing commitment to expanding its market footprint.
Funding Details
The PayMate board has approved a special resolution to issue 3,822,432 non-cumulative participating compulsorily convertible preference shares at an issue price of Rs 684 each. This strategic move aims to bolster the company’s operational capabilities and capitalize on emerging growth opportunities.
Utilization of Funds
The funds raised will primarily be directed towards enhancing PayMate’s market presence and supporting general corporate purposes. The company is also considering this funding round as a precursor to potentially raising additional capital in the near future.
About PayMate
Founded to streamline business transactions, PayMate offers a platform that facilitates payments through commercial credit cards and bank partnerships. Its services automate accounts payable and receivable processes while providing short-term credit options for improved cash flow management. The company generates revenue through transaction fees, subscriptions, and various financial services.
To date, PayMate has successfully raised over $80 million from notable investors such as Lightbox Ventures, VISA International, and Mayfield Fund.
IPO Aspirations
PayMate had initially filed for an IPO in May 2022 with plans to raise around Rs 1,500 crore. However, the listing was postponed due to regulatory challenges and market conditions. In early 2023, the Securities and Exchange Board of India (SEBI) advised the company to update its documentation. Ajay Adiseshan, the chairman of PayMate, expressed optimism about proceeding with the IPO within six to nine months.
Financial Performance
In the fiscal year ending March 2024, PayMate reported flat revenues of Rs 1,342 crore. The company’s losses decreased by 12.5% to Rs 49 crore during this period, indicating a potential path towards profitability as it navigates its growth strategy.
As PayMate embarks on this new funding journey, it aims to solidify its position in the competitive digital payments landscape in India. With a robust platform and strategic backing from investors like Crimson Ventures, the company is poised for significant growth in the coming years.