B2B digital payments company PayMate has raised an undisclosed amount of Series D funding from Recruit Strategic Partners (venture capital arm of Japan-based Recruit Co.), Brand Capital, Mayfair 101, along with participation from strategic partner Visa.
In March, PayMate had partnered with Visa to expand its operations to 92 countries in Central Europe, Middle East and Africa (CEMEA). The investment is an extension of the partnership.
Speaking about the fundraise, Ajay Adiseshann, founder and CEO of PayMate said, “We are very excited to have Visa come onboard as an investor which will help complement our existing commercial partnership with them and help us scale faster by combining capital with Visa’s network.”
PayMate was founded by Adiseshann and Probir Roy in 2006. PayMate is a digital platform which enables enterprise and SME businesses to seamlessly 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.
Till now, the company has raised over $15.5 Mn in disclosed funding from investors such as Kleiner Perkins Caufield & Byers (KPCB), Sherpalo Ventures, Mayfield Fund and Lightbox Ventures.
James Mawhinney, managing director of Mayfair 101, which has now made its third investment in PayMate, said “PayMate is well placed to build on its success in India to become the default provider of B2B payments in the South Asia & CEMEA regions.”
The company claims to help businesses become more efficient, cut operational costs, gain greater control and transparency, and improve cash flows. PayMate uses automated solutions for business payment process and provides the infrastructure for swift transfer of funds to SMBs. It claims to have signed up over 35K businesses to its platform, which are said to be processing approximately $5 Bn in payments annually.
PayMate had also partnered with multiple banks in India including State Bank of India, HDFC Bank, and Axis Bank. The company claims to have enabled more than $325 Mn in credit to SMEs for their working capital.
According to Inc42 DataLabs, fintech startups have gained $1.4 Bn in funding in 2018, making it one of the most funded sectors of 2018. In India’s B2B digital payments space, PayMate competes players such as Razorpay, Innoviti, and CCAvenue.