Paramotor Digital Technology IPO

The Securities and Exchange Board of India (SEBI) approved the IPO proposal of Paramotor Digital Technology Ltd. on August 25, 2026, following its confidential pre-filing. The company can proceed with the IPO launch process, subject to market conditions and other regulatory approvals. The SEBI approval remains valid for 18 months.

The proposed IPO is a book-built issue worth ₹1,000 crore, comprising a fresh issue of shares worth ₹698 crore and an offer for sale (OFS) of ₹302 crore by existing shareholders.

The company plans to list its equity shares on the National Stock Exchange (NSE) and BSE. Motilal Oswal Investment Advisors Ltd. has been appointed as the book-running lead manager, while MUFG Intime India Pvt. Ltd. will serve as the issue registrar.

The IPO opening and closing dates, price band, and lot size have not yet been announced.

About Paramotor Digital Technology

Paramotor Digital is a fintech and software company that helps businesses manage payments, employee rewards, digital gift cards, and technology services. Its main offerings include:

• Spend Management: Through its SpendPro platform, the company helps businesses issue virtual cards, track transactions in real time, set spending limits, and control card usage.
• Rewards and Loyalty: Its RewardOn platform allows companies to create and manage reward programmes for employees and business partners.
• Digital Gifting: Through its yayyy.shop marketplace, the company offers brand gift cards and prepaid payment instruments that customers can use for purchases.
• Technology and API Services: Its DevStack platform provides tools that help businesses build customised applications, manage digital wallets and cards, and complete digital identity verification.

Paramotor Digital Technology IPO Objectives

The company will use ₹3,550 million (₹355 crore) to acquire and retain customers, promote its brand, and expand its business.

It will allocate ₹940 million (₹94 crore) towards technology development, cloud infrastructure services, and IT assets.

Around ₹380 million (₹38 crore) will be used for capital expenditure on office infrastructure.

The remaining funds will be allocated towards general corporate purposes, with the amount to be finalised after price discovery.

Industry Outlook

• India’s custom fintech software market is projected to grow at a CAGR of 32.3% between 2025 and 2030, driven by digital payments, rising internet penetration, regulatory compliance requirements, and increasing enterprise digitisation.
• India’s digital gift card market is expected to grow from USD 15.10 billion in 2025 to USD 33.65 billion by 2030, registering a CAGR of 17.4%, supported by e-commerce growth and rising corporate and personal gifting demand.
• India’s Rewards and Loyalty market is projected to expand from USD 5.09 billion in 2025 to USD 10.57 billion by 2030, at a CAGR of 15.8%, driven by employee rewards, customer engagement, and channel partner incentive programmes.
• Increasing adoption of API-based platforms, cloud-based financial systems, and digital payment solutions is expected to create further opportunities for fintech software and technology service providers.

Financial Performance of Paramotor Digital Technology Limited

Strengths and Opportunities for Paramotor Digital Technology

1. The company operates across prepaid cards, digital gifting, spend management, and rewards and loyalty, allowing it to serve multiple consumer and enterprise needs.
2. India’s digital payment transactions increased from 21 billion in FY2018 to 228 billion in FY2025, creating opportunities for the company’s digital payment and prepaid card solutions.
3. The company’s transacting users increased from 43,269 in FY2025 to 1.58 million in FY2026, supported by the launch of yayyy.shop and its Rewards and Loyalty business.
4. The company reported user retention rates of 99.00% in FY2026, 87.98% in FY2025, and 98.48% in FY2024, indicating strong customer retention.
5. Its in-house, cloud-native technology platforms support high transaction volumes, third-party integrations, and customised enterprise solutions, while its DevStack and RewardOn platforms help clients reduce development time and implementation effort.
6. The company expanded its partner network from two partners in FY2024 to 11 as of June 30, 2026, strengthening its distribution capabilities across prepaid cards and gift cards.
7. Its prepaid card partnerships provide access to Visa, RuPay, and Mastercard networks, while a co-branding agreement with Mastercard in March 2026 supports the expansion of its offerings.
8. Revenue from operations increased at a CAGR of 327.03% from ₹330.76 million in FY2024 to ₹6,031.48 million in FY2026, while EBITDA grew at a CAGR of 232.12% to ₹781.93 million.
9. Profit after tax from continuing operations grew at a CAGR of 246.02% from ₹49.39 million in FY2024 to ₹591.35 million in FY2026, reflecting significant growth in profitability.
10. The company is led by promoters with substantial industry experience, including over 24 years of experience in banking and payments for Sonia Pankaj Asher and over 17 years of professional experience for Rahul Anand.

Risks and Threats for Paramotor Digital Technology

1. The company is heavily dependent on its PPI program management and distribution business and its newly launched Rewards and Loyalty business, exposing it to fluctuations in demand.
2. Revenue concentration among a few key customers increases the risk of business disruption if major customer contracts are terminated.
3. The limited operating history of its DevStack and Rewards and Loyalty businesses creates uncertainty around their ability to scale efficiently.
4. Dependence on three gift card aggregators and three dealers exposes the Rewards and Loyalty business to supply disruptions and a potential reduction in catalogue attractiveness.
5. A shift towards lower-margin gift cards could put pressure on revenue from the Rewards and Loyalty business.
6. Delays or failure to meet agreed project specifications in the DevStack business could result in contractual damages and reputational harm.
7. The company's limited operating history at its current scale raises concerns about the sustainability of its recent financial growth.
8. Revenue growth may outpace profit growth as the Rewards and Loyalty business adopts gross revenue recognition, making historical profit growth trends less indicative of future performance.

Paramotor Digital Technology IPO Reservation

Paramotor Digital Technology IPO Promoter Holding

Paramotor Digital Technology IPO Registrar and Lead Managers

Paramotor Digital Technology IPO Lead Managers

• Motilal Oswal Investment Advisors Ltd.
• Equirus Capital Ltd.

Registrar for Paramotor Digital Technology IPO

• Name: MUFG Intime India Pvt. Ltd.
• Phone: 022-49186000
• Email ID: paramotordigital.ipo@in.mpms.mufg.com

How To Check the Allotment Status of the Paramotor Digital Technology IPO?

1. Login to Your Angel One Account: Open the Angel One app or website and log in with your credentials.
2. Locate the IPO Section: Navigate to the 'IPO' section on the platform.
3. Select IPO: Find and select the Milky Mist Ltd. IPO from the list of open IPOs.
4. Enter the Lot Size: Specify the number of lots you want to bid for.
5. Submit Your UPI ID: Enter your UPI ID to link your payment method and submit your application.
6. Approve Funds: Once you receive the bid request on your UPI app, approve it by entering your UPI PIN.

How To Apply for Paramotor Digital Technology IPO Online?

Steps to check IPO allotment status on Angel One’s app:

1. Log in to the Angel One app.
2. Go to the IPO Section and then to IPO Orders.
3. Select the individual IPO that you had applied for and check the allotment status.
4. Angel One will notify you of your IPO allotment status via push notification and email.

Contact Details of Paramotor Digital Technology IPO

Address: 433, 4th Floor, Laxmi Plaza, Laxmi Industrial Estate, New Link Road, Andheri, Mumbai, Maharashtra, 400053

Phone: +91 6284248185

Email ID: sales@paramotordt.com