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B2B payments and services provider company Paymate has filed its Draft Red Herring Prospectus (DRHP) with the Indian market regulator SEBI to launch its IPO and raise Rs 1,500 crores.
PayMate is a leader in B2B payments for enterprises and SMEs across supply chains, founded in 2006. The PayMate platform provides a comprehensive digital workflow tied to payments which enable greater control and transparency along with better cash flows and an end-to-end reconciliation for a superior experience for enterprises and SMEs in closed-loop supply chains. The company has its presence in South Asia, and UAE and is expanding through CEMEA (Central and Eastern Europe, Middle East, and Africa).
The company has a partnership with Visa as Visa cards accounted for 90% of commercial credit cards handled through the system as of December 31, 2021. The company has several large names behind it as investors such as Visa, Recruit, Mayfair, Lightbox, Sherpalo Ventures, etc. with Lightbox holding 27.31% of the company, its largest shareholder.
The company will raise Rs 1,125 crores through the fresh issues and the balance will be an Offer for Sale to its investors. The OFS includes founder Ajay Adiseshan selling shares worth Rs 135 crores, Lightbox selling around Rs 128 crores worth of shares, Mayfield Rs 15.66 crores, and others.
Rs 77 crores of the proceeds of the issue will be used for geographic expansion, Rs 228 crore will be used for pursuing inorganic initiatives and Rs 689 crore will be used as collateral with its financial institution partners to improve its margins.
ICICI Securities, Capital Markets India, JM Financial, HSBC Securities, and SBI Capital Markets are the lead managers of the issue.
Article by Aman Agarwal.
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