PAYMATE INDIA FILES PAPERS FOR ₹1,500 CR PUBLIC OFFERING

NEW DELHI: Leading business to business (B2B) payments and services provider PayMate India has filed preliminary papers with the Securities and Exchange Board of India (Sebi) to raise ₹1,500 crore through an initial public offering (IPO).

The initial share sale comprises fresh issue of equity shares worth ₹1,125 crore and offer- for- sale ( OFS) of ₹ 375 crore by promoters, investors and other shareholders, according to the draft red herring prospectus (DRHP).

Those selling shares in the OFS include promoters Ajay Adiseshan and Vishvanathan Subramanian and investors Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC, and IPO Wealth Holdings. Some shareholders are also offering shares through this route.

The offer also includes a reservation for subscription by eligible employees.

The company may also consider a private placement of equity shares aggregating up to ₹225 crore. If such placement is completed, the fresh issue size will be reduced.

Proceeds from its fresh issuance worth ₹77 crore will be utilised for investment for expanding business into new geographies, ₹228 crore for pursuing inorganic initiatives, ₹688.70 crore for placing cash as collateral with financial institution partners to improve its margins and general corporate purposes.

PayMate has developed from a consumer-facing to a B2B payments platform since its inception in 2006. It is a multi-payment category platform that incorporates vendor payments, statutory payments, and utility payments, giving its customers a “fully-integrated” B2B payment stack. It 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.

The shares are proposed to be listed on BSE and NSE.