The fresh development has come almost a few months after the startup received in-principle payment aggregator approval from the RBI
In May last year, PayMate had filed DRHP with an IPO offer worth INR 1,500 Cr
Earlier this year, PayMate was asked to refile its DRHP with updated details
Inc42 Daily Brief
Stay Ahead With Daily News & Analysis on India’s Tech & Startup Economy
Mumbai-based B2B payments solutions provider PayMate is likely to refile its Draft Herring Red Prospectus (DRHP) with the market regulator SEBI within the next 90 days.
The fresh development has come almost a few months after the startup received in-principle approval from the Reserve Bank of India to operate as a payment aggregator.
The move will enable PayMate to facilitate payments for merchants and businesses. Back then, in a statement, PayMate said that the approval will enable customers and users on the platform with the security of tokenised card transactions.
According to Ajay Adiseshann, the founder of PayMate, the startup is currently waiting for the payment aggregator licence final approval from the central bank. Once approved, PayMate will be able to include additional details in its DRHP prospectus
“I am expecting only incremental scrutiny thereon,” he was quoted by ET.
After receiving the in-principle approval for the payment aggregator licence, the company will need to submit System Audit Report (SAR) along with additional documents with the RBI to get the complete authorisation.
Earlier in January, SEBI had asked PayMate to refile its DRHP with additional, fresh updates.
Back then, In a statement, PayMate said that it would be able to submit the mandatory SAR by the second week of February. “Based on the SEBI communication, we have received and following our receipt of in-principle approval from RBI for the payment aggregator (PA) authorisation recently, we will be in a position to submit the mandatory SAR (System Audit Report) by the first or second week of February.”
“We are confident of a quick turnaround by RBI; and thereafter refiling DRHP with relevant updates along with the RBI final approval,” it added.
The fresh development has come almost a year after PayMate had first filed its DRHP with the market regulator. Back then, the company’s IPO was worth INR 1,500 Cr ($193.5 Mn). The IPO offer included a fresh issue of INR 1,125 Cr and an offer for sale (OFS) of INR 375 Cr.
As per the IPO prospectus, Adiseshann intended to sell off a significant portion of his stake with shares worth INR 134.73 Cr, or almost half of the total OFS from PayMate. Its long time investor – Lightbox was offloading INR 127.38 Cr worth of shares.
Founded in 2006 by Ajay Adiseshann, PayMate is a B2B payments solution provider, which allows a company to make payments across a supply chain.
Note: We at Inc42 take our ethics very seriously. More information about it can be found here.