PayMate Secures Rs 261 Crore in New Funding for B2B Digital Payment Solutions

PayMate, a prominent provider of B2B digital payment solutions, has successfully raised Rs 261 crore, approximately $30 million, from Crimson Ventures. This marks the company’s initial equity round this year.

Details of Funding Round

The PayMate board has approved a special resolution to issue 38,22,432 non-cumulative participating compulsorily convertible preference shares at an issue price of Rs 684 each. This will raise Rs 216 crore, as reflected in their regulatory filing obtained from the Registrar of Companies.

Utilization of Funds

The funds raised will be allocated to enhance PayMate’s market presence, leverage emerging growth opportunities, and support general corporate initiatives, according to the filings. There is speculation that this could be part of a larger funding initiative, indicating the potential for additional capital to be raised during this period.

About PayMate

PayMate operates as a B2B digital payments platform, facilitating transactions through commercial credit cards and banking partnerships. The platform assists businesses in automating their accounts payable and receivable processes while providing short-term credit to enhance cash flow management. Revenue is generated through transaction fees, subscriptions, and various financial services.

Funding History

To date, PayMate has raised over $80 million, with investments from notable firms such as Lightbox Ventures, VISA International, Mayfield, IPO Wealth Holding, and others.

IPO Prospects

PayMate initially submitted an application for an IPO in May 2022, intending to raise approximately Rs 1,500 crore. However, the listing did not progress due to regulatory and market challenges. In January 2023, the Securities and Exchange Board of India (SEBI) recommended that the company refresh their documentation. Ajay Adiseshan, the chairman, indicated that there are plans to move forward with the IPO within the next six to nine months.

Financial Performance

For the fiscal year ending March 2024, IPO-bound PayMate reported stable revenue of Rs 1,342 crore, although it faced a loss that decreased by 12.5% to Rs 49 crore during the same timeframe.