SEBI Asks Fintech Unicorn PayMate India To Refile DRHP

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The regulatory body SEBI originally returned PayMate’s DRHP on January 17th, 2023 asking to make certain updates in the IPO papers

PayMate had filed the DRHP for an INR 1500 IPO in May 2022

The development comes on the heels after SEBI asked hospitality chain OYO to share an updated DRHP with financial statements of September quarter FY23

Stock exchange body SEBI has asked Mumbai-based fintech unicorn PayMate India to refile its draft red herring prospectus (DRHP) with new updates. The regulatory body originally returned the DRHP on January 17th, 2023. 

PayMate had filed DRHP for an INR 1500 IPO with the regulatory body in May 2022. Its IPO includes a fresh issuance of equity shares worth INR 1,125 Cr and an OFS of INR 375 Cr by promoters, investors and other stakeholders, according to a PTI report. 

The development comes on the heels after SEBI asked hospitality chain OYO to share an updated DRHP with financial statements of September quarter FY23. Owing to this, OYO’s IPO is anticipated to get delayed by three months.

As per PayMate’s DRHP, its promoters– Ajay Adiseshan and Vishvanathan Subramanian and investors including Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC and IPO Wealth Holdings would be selling their stakes via OFS. While, other stakeholders would be offloading their shares.

Cumulatively, PayMate’s promoter and promoter group hold 66.70% share in the startup while the remaining share is held by public shareholders.

In February 2022, Inc42 reported that PayMate converted into a public company, which is an important step toward the IPO. 

Founded in 2006 by Adiseshann, the fintech startup enables organisations to make transactions across a supply chain. It works along with banks to offer credit to small and medium-sized enterprises. 

The startup also offers Procure to Pay (P2P) automation and APIs, which enables businesses to utilise its payment solutions in their enterprise resource planning (ERPs). 

At the time of filing DRHP, the startup had said (in IPO papers) that it would raise an anchor fundraising round, those details were not specified in the papers.

In September 2022, PayMate raised $100 Mn in a pre-IPO funding round.

In the financial year 2021, it reported a net loss of INR 16 Cr and an operating revenue of INR 348 Cr. It clocked a negative EBITDA of INR 14 Cr, as per Tofler data. 

In the fintech segment, a slew of players including Fino Payments Bank, Paytm, MobiKwik, EbixCash and Pine Labs, among others have either listed publicly or in plans to file for IPO.  



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