PayMate India to resubmit draft IPO papers after RBI received final nod for payments aggregator license

Fintech PayMate India announced on Tuesday that it will resubmit initial public offering (IPO) papers to Sebi after receiving final approval from the Reserve Bank of India (RBI) to act as an online payments aggregator (PA) to operate.

In December, it received RBI’s approval in principle for approval as a payment aggregator.

PayMate India has been asked by the Securities and Exchange Board of India (Sebi) to resubmit IPO documents with certain updates. The move may delay the company’s initial stock sale.

According to sources, the company has been asked to update DRHP with the payment aggregator’s final approval and other significant updates as appropriate, PTI news agency reported.

“Having recently received RBI’s approval in principle for payment aggregator (PA) approval, we will be able to submit the mandatory SAR (System Audit Report) by the first or second week of February,” the company said in a statement .

SAR is part of standard operational protocol to obtain final approved PA approval from Reserve Bank of India (RBI).

“We are confident that the RBI will respond quickly and thereafter resubmit DRHP with relevant updates along with the RBI’s final approval,” said PayMate India.

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

The proposed IPO will involve a new issuance of shares worth €1,125 crore and an Offer to Sell (OFS) of €375 crore from promoters, investors and other stakeholders.

The Company’s founders – Ajay Adiseshan and Vishvanathan Subramanian and investors – along with Lightbox Ventures I, Mayfield FVCI Ltd, RSP India Fund LLC and IPO Wealth Holdings will sell shares through the OFS.

In addition, some existing shareholders are offering to sell shares in this way.

Currently, the promoter and promoter group hold 66.70 percent of the shares in the company, with the rest held by public shareholders.

According to an update on Sebi’s website on Monday, the regulator returned the company’s DRHP on Jan. 17, 2023, with instructions to resubmit it after applicable updates/revisions.

PayMate is a multi-category payment platform spanning supplier payments, statutory payments, and utility payments, offering its customers a fully integrated B2B payments stack.

The platform also enables consumers and their sellers, suppliers, buyers, merchants and distributors to use commercial credit cards to make statutory direct tax and GST payments and utility payments.

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

Earlier this month, Sebi sent back the draft IPO papers of domestic wireless maker Lava International and Oravel Stays Ltd, parent company of travel tech company OYO, asking them to resubmit the papers with certain updates.

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