B2B payments solutions provider, PayMate, is preparing to refile its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) within the next 90 days. This development comes after the startup received in-principle approval from the Reserve Bank of India (RBI) to operate as a payment aggregator.
The approval granted by the RBI will enable PayMate to facilitate payments for merchants and businesses. In a previous statement, the company highlighted that this approval would offer customers and platform users the security of tokenized card transactions.
PayMate founder Ajay Adiseshann stated that the startup is currently awaiting final approval for the payment aggregator license from the central bank. Once approved, PayMate will be able to provide additional details in its DRHP prospectus. Adiseshann expressed confidence that the scrutiny would be incremental going forward.
To obtain complete authorization, the company will need to submit a System Audit Report (SAR) along with additional documents to the RBI, following the in-principle approval for the payment aggregator license.
Earlier this year, SEBI requested PayMate to refile its DRHP with updated information. The company assured that it would be able to submit the mandatory SAR by the second week of February. PayMate expressed confidence in a swift turnaround by the RBI, followed by the refiling of the DRHP with relevant updates along with the final approval from the central bank.
This recent development comes almost a year after PayMate initially filed its DRHP with the market regulator. The initial IPO was valued at INR 1,500 Crore ($193.5 million), including a fresh issue of INR 1,125 Crore and an offer for sale (OFS) of INR 375 Crore.
PayMate, founded in 2006 by Ajay Adiseshann, provides B2B payment solutions that enable companies to make payments across their supply chains. The company’s IPO prospectus outlined Adiseshann’s intention to sell a significant portion of his stake, amounting to shares worth INR 134.73 Crore, while long-time investor Lightbox planned to offload shares worth INR 127.38 Crore.
With the anticipation of final approval from the RBI, PayMate is on track to further its plans as a payment aggregator, providing seamless B2B payment solutions and expanding its presence in the market.
