PayMate plans to launch an IPO in FY22

PayMate, a leading payment solutions firm backed by Visa and Lightbox, is planning to file a domestic initial public offering. With this move, it will join a clutch of tech firms heading towards an IPO.

What’s happening?

PayMate has started its preliminary discussions with investment banks for a prospective listing. If this plan pans out, the company will launch a domestic IPO in FY 2022.

But why does it wish to go public?

Per industry sources, the company wants to take this route for the following reasons:

• Leverage the pandemic-induced acceleration in digital payments
• Unlocking value for the company
• Raising growth capital
• Making way for a partial exit of multiple investors

What do PayMate’s services entail?

PayMate is a provider of B2B payment solutions for SMEs and Enterprises across supply chains. As a result, this company automates payments and processes alongside working capital optimisation.

It offers an all-encompassing digital workflow for payments, which enables the following:

• Faster vendor payments
• Improved control and transparency
• Enhanced cash flow
• End to end reconciliation
• Superior experience for enterprises in closed-loop supply chains

Let’s take a closer look at PayMate

PayMate is funded by a total of 8 investors, namely the following:

• Visa & Lightbox
• Recruit Strategic LLC
• Kleiner Perkins
• Mayfair 101
• Caufield & Byers
• BCCL
• Mayfield Fund
• Sherpalo Ventures

Key highlights on PayMate

• PayMate acquired Z2P on 15 May 2018.
• Its revenue jumped 400% in FY 2018-19.
• It has raised a sum of $40.5 million in funding (as of 2021).
• The company’s business-to-business payments platform processed more than $1.3 billion in GST payments in 2021.

Presently, the company has a solid foothold in India and the United Arab Emirates. It is also making strides in expansion across CEMEA. Additionally, PayMate aims to achieve about $10-15 billion in gross processing volume by FY 2022.

Parting thoughts

PayMate India Pvt. Ltd. is laying the groundwork for an initial public offering in a bid to raise growth capital. As these are early days, it is too soon to gauge the size of PayMate’s proposed IPO. However, you can expect the launch to take place in FY 2022.

Frequently Asked Questions

1. What is PayMate’s market valuation?

PayMate valuation stood at $153 million as of 23 April 2019.

2. What is the size of PayMate IPO?

Yet to be disclosed.

3. Where is PayMate listed?

Nowhere yet; the company plans to get listed in 2022.