Exclusive: Paymate To Raise $100 Mn In Pre-IPO Round, To Be Unicorn

SUMMARY

The fintech startup was founded in 2006 and had last raised $25 Mn Series D in 2019

The company had raised $4 Mn as part of this round in August which valued the company at $930 Mn-$950 Mn

The startup which recently forayed into the UAE claims its services are being used by more than 105,000 Indian businesses

Mumbai-based B2B payment solutions provider PayMate is raising $100 Mn in its pre-IPO round. As per sources, with this investment, PayMate will be inching towards attaining unicorn status.

Inc42, last week exclusively reported that PayMate has raised around $4 Mn from Astor Management AG, Felicitas Equity Fund, and CXI Valley I LLC. The fresh round was led by Felicitas, a US-based equity fund who will infuse $2 Mn in the startup. This round had valued the startup between $930 Mn and $950 Mn, according to Inc42 estimates.

Sources confirmed that the $4 Mn is the part of the $100 Mn that the startup is raising as its pre-IPO round.

PayMate was founded by Ajay Adiseshann and Probir Roy in 2006. The fintech startup enables enterprise and small-medium enterprises (SMEs) businesses to automate and digitise their entire procurement to payment cycle (procure-to-pay). Its product features include vendor management, vendor payments, customer payments, invoicing, supply chain financing options, and more.

As per the regulatory filings, the startup is raising the fresh fund for “business purposes and to augment long term resources and capital base of the company.”

In 2019, PayMate had raised around $25 Mn in its Series D round from Recruit Strategic Partners, the venture capital arm of Japanese firm Recruit Co. Ltd., Brand Capital, Mayfair 101 and payments giant Visa in 2019. The startup which recently forayed into the UAE claims its services have been used by more than 105,000 Indian businesses. PayMate will be going for an initial public offering in the next year. The startup plans to list itself on the BSE.

PayMate now joins the bandwagon of Indian fintech startups such as Vijay Shekar Sharma’s Paytm, Delhi NCR based MobiKwik, Pine Labs, and Fino Payments who will be going for an initial public offering in the coming months.

Paytm has already filed its draft red herring prospectus and is eyeing for an INR 16,600 Cr IPO at a valuation close to $25 Bn – $30 Bn. Gurugram-based MobiKwik is going for an INR 1,900 Cr IPO where it will issue new shares worth INR 1,500 Cr and secondary shares worth INR 400 Cr.