Paymate India, a payments and services provider, has filed its draft red herring prospectus (DRHP) with market regulator, Securities and Exchange Board of India (SEBI) to raise funds through an initial public offering (IPO). 1125 crore and offer-for-sale off 375 crores.
Up to 10% of the PayMate India offers will be available for allocation to retail individual bidders, while less than 75% of the offers will be earmarked for qualified institutional buyers and 15% for non-institutional bidders. The offer also includes reservation for membership by eligible employees.
Offer for sale includes 134.73 crores by Ajay Adishan and up to 3.29 crores by Viswanathan Subramaniam (“Promoter Selling Shareholders”), . until 127.38 crores, by Lightbox Ventures I 15.66 crore by Mayfield FVCI, Ltd., up to Rs. 2.74 crore by RSP India Fund. LLC, up to IPO by Wealth Holdings Private Limited (“Investor Selling Shareholder”) up to Rs.17.01 crore Yes. 1.96 crore by Adishan, up to 11.45 cr, by Uma Viswanathan 15.37 crores by Dhruv Pratap Singh, up to 26.56 crores by Probir Kumar Roy, upto 13.27 cr and up by Alexander Kuruvilla 5.59 crores by Anand Rajaram (“Other Selling Shareholder”).
PayMate India said it may consider private placement of equity shares in consultation with leading bankers on the issue 225 crores. If such placement is completed, the size of the new issue can be reduced.
As on the date of filing of DRHP, the promoter and promoter group held 66.70% stake in the company and the rest was with public shareholders.
Income from fresh issuance of Rs. 77 crore will be used for investment in new geographies. 228 crore to take forward the inorganic initiative, 688.70 crore to hold cash as collateral for improving its margins and general corporate objectives with its financial institution partners.
PayMate is a multi-payment category platform that encompasses vendor payments, fiat payments and utility payments, giving its customers a “fully integrated” B2B payment stack. The platform also allows consumers and their sellers, suppliers, buyers, dealers and distributors. Using 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 over 90% of commercial credit cards operated through the system as of December 31, 2021. There is also one shareholder in Visa Paymate, which owns 2.94 percent of the fully diluted paid-up equity share capital.
PayMate’s revenue from operations grew 61.19 percent 216.14 crore in FY 2020 348.40 crore in FY 2021, mainly due to increase in local transaction fee and international transaction fee. The revenue for the nine-month period ending December 2021 was 843.44 crores.
ICICI Securities Limited, HSBC Securities & Capital Markets (India) Private Limited, JM Financial Limited and SBI Capital Markets Limited are the Book Running Lead Managers and Link Intime India Private Limited is the Registrar of Offers. The equity shares are proposed to be listed on BSE and NSE.