PayMate India to refile draft IPO papers after receiving a nod from RBI for billing aggregator license

By Consultants Review Team Wednesday, 25 January 2023


Consultants Review Team

PayMate India, a fintech company, stated that after gaining final approval from the Reserve Bank of India (RBI) to function as an online payment aggregator, it will resubmit the draft initial public offering (IPO) papers with Sebi (PA).

It obtained in-principle approval from RBI for the payment aggregator authorization in December.

PayMate India was asked by the Securities and Exchange Board of India (Sebi) to refile the documents for the Initial Public Offering (IPO) with certain updates. The move may delay the company's initial share sale.

According to sources, the company was asked to update DRHP with final payment aggregator authorization and other material updates if any, reported news agency PTI.

"Following our receipt of in-principle approval from RBI for the Payment Aggregator (PA) authorization recently. We will be in a position to submit the mandatory SAR (System Audit Report) by the first or second week of February," the company said in a statement.

SAR is a part of the standard operating protocol to get the final approved PA authorization from the Reserve Bank of India (RBI).

"We are confident of a quick turnaround by RBI, and thereafter refiling DRHP with relevant updates along with the RBI final approval," PayMate India said.

PayMate India had filed the Draft Red Herring Prospectus (DRHP) for a Rs 1,500 crore IPO with the Sebi in May 2022.

The proposed IPO comprises a fresh issue of equity shares worth Rs 1,125 crores and an Offer-For-Sale (OFS) of Rs 375 crores by promoters, investors, and other shareholders.

The company's promoters Ajay Adiseshan and Vishvanathan Subramanian and investors --, as well as Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC and IPO Wealth Holdings, are to sell shares through the OFS. Besides, certain existing shareholders are offering to offload shares through this route.

Currently, the promoter and promoter group hold 66.70 percent stake in the company and the rest is with public shareholders.According to an update on Sebi's website, the regulator returned the company's DRHP on January 17, 2023, with advice to refile it post applicable updates/revisions.

PayMate is a multi-payment category platform that incorporates vendor payments, statutory payments, and utility payments, giving its customers a fully-integrated B2B payment stack.

The platform also allows consumers and their vendors, suppliers, buyers, dealers, and distributors to use commercial credit cards to make statutory payments of direct taxes and GST as well as utility payments.

Visa has a partnership with PayMate. It is also a shareholder in PayMate, owning 2.94 percent of the fully diluted paid-up equity share capital.

Earlier this month, Sebi returned the draft IPO papers of home-grown mobile maker Lava International and Oravel Stays Ltd, the parent company of travel-tech firm OYO, and asked them to refile the documents with certain updates.

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