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PayMate to raise $30 Mn from Crimson Ventures

Entrackr · 6m ago

Medial

Business-to-business digital payment solutions provider PayMate is raising Rs 261 crore (approximately $30 million) from Crimson Ventures. This is the firm's first equity round this year. The board at PayMate has passed a special resolution to issue 38,22,432 non-cumulative participating compulsorily convertible preference shares at an issue price of Rs 684 each to raise Rs 216 crore or $30 million, its regulatory filing accessed from the Registrar of Companies shows. The company will use these proceeds to strengthen its market presence, capitalize on emerging opportunities for business growth, and support general corporate purposes, as per filings. This could be part of a larger funding round, with the company potentially raising more capital during this phase. PayMate is a B2B digital payments platform that streamlines transactions through commercial credit cards and bank partnerships. It helps businesses automate accounts payable and receivable while offering short-term credit for better cash flow management. The company earns through transaction fees, subscriptions, and financial services. PayMate has raised over $80 million to date, with the likes of Lightbox Ventures, VISA International, Mayfield, IPO Wealth Holding, and others. PayMate had initially filed for an IPO in May 2022, planning to raise around Rs 1,500 crore, but did not proceed with the listing due to regulatory and market hurdles. In January 2023, the regulator (SEBI) advised them to update the documents, and its chairman, Ajay Adiseshan, indicated that they would proceed with the IPO within six to nine months. During the fiscal year ended March 2024, IPO bound PayMate recorded flat revenue of Rs 1,342 crore with a loss, which declined by 12.5% to Rs 49 crore in the same period.