PayMate India Limited will raise up to Rs. 1500 crore through the public route, consisting of new shares worth Rs 1125 crore and an offer for sale of equities up to Rs. 375 crore. PayMate is an end-to-end digital and financial services company based in Mumbai.
PayMate is a leading B2B payment service provider for SMEs and enterprises. PayMate offers an integrated platform facilitating vendor payment, statutory and utility payments. It provides a fully-integrated B2B payment stack to the customers.
As on December 31, 2021, the company had 49,953 customers using their payment platform, including 480 enterprise customers and 49,473 small and medium enterprises.
PayMate India Ltd. Ltd.Objective
- The net proceeds from the fresh issues will be utilised for leveraging its capacity and strengthening the brand - growing customer base, expanding geographical presence in the international market, increasing penetration in the existing supply chain system, expanding relationships with financial institutions, and others.
Why should you invest in the PayMate India Ltd. Ltd.IPO?
Here are our top reasons.
- PayMate is the largest B2B payments player and one of the fastest-growing Indian online, card-based payment-processing services providers, in terms of TPV processed.
- Between 2019 and 2021 they have expanded their customer base to 49,618 customers with 391 new enterprises and 49,227 new SMEs.
- PayMate has Visa as one of their stakeholders with 2.94% stake in the company.
Competitive Peers
There are no listed companies in India with a business portfolio similar to PayMate. Hence, a strict comparison isn’t possible.
IPO Financials
| Particulars | FY21 | FY20 |
|---|---|---|
| Revenue From Operation | 3,484.00 | 2,161.39 |
| EBITDA | 255.97 | 249.64 |
| EBITDA Margin (%) | 7.35 | 11.55 |
| Profit After Tax | 277.68 | 281.12 |
| EPS | 280.60 | 279.22 |
| ROE | -163.39 | -79.57 |
Know before investing
Strengths
3They have partnered with key stakeholders including financial institutions to enable automation of account payables and receivables for businesses.
Their innovations platform enables automation of payments, evaluation and acceptance of card numbers, detection of fraudulent transactions, and others.
The platform is developed in-house as a full-stack payment and credit engine.
Risks
3As a payment solutions provider the company needs to follow strict RBI guidelines and abide by any changes in laws and regulations.
They are dependent on their top five customers to receive the largest part of their revenue.
Any disruption in their relationship with Visa which constitutes 90% of the cards processed by PayMate will affect their future cash flow.
