Indian B2B Payments Firm PayMate Planning $400M IPO

PayMate India Pvt, a Mumbai-based business-to-business (B2B) payment solution provider, has chosen financial institutions to handle its initial public offering, which could raise about $400 million, Bloomberg reported on Tuesday (July 27).

The share sale could happen as early as 2022 and PayMate intends to file a draft prospectus for the IPO by September, according to the news outlet. ICICI Securities Ltd., JM Financial Ltd. And Nomura Holdings Inc. were reportedly chosen to organize the share sale.

The news follows an announcement that PayMate had, in 2019, raised $25 million in a series D round of growth capital to advance expansion within India and internationally to Central and Eastern Europe, the Middle East and Africa. Funding for that round was provided by Visa, Recruit Strategic Partners, Brand Capital, as well as existing investor Mayfair 101. The 15-year-old startup had previously raised $18 million.

PayMate helps large businesses and small and medium-sized businesses (SMBs) transition from cash payments and checks to digital payments. According to its website, the PayMate platform serves more than 90,000 businesses. Features of the cloud-based software include vendor management, vendor payables and customer receivables.

Earlier this year, PayMate said in an announcement that its platform had processed more than $130 million goods and services taxes monthly during the pandemic year via bank-issued Visa commercial cards. Transactions are expected to grow to more than $250 million processed monthly in the fiscal year ending March 2022, the company said.

As PYMNTS reported previously, Visa began collaborating with PayMate in January 2018 to improve its payment services for corporate customers. According to the earlier report, Visa had selected PayMate to provide a business-to-business payment platform for joint customers, including SMBs having difficulty with managing manual payment methods. The PayMate platform helps automate processes, including accounts payable, accounts receivable, eInvoicing and cash flow management.

By February 2019, PayMate had expanded its partnership with Visa to include businesses in the Central and Eastern Europe, Middle East, and Africa.