ABOUT

PayMate (incorporated in India) is a leading provider in B2B payments for Enterprise and SME’s. Paymate platform is an integrated platform which includes multiple payment categories, providing a fully integrated B2B payments stack (vendor payment, invoicing, GST, reconciliation) along with lending facilities to their customers.

PayMate has developed partnerships with banks and financial institutions like ICICI Bank Ltd, SBI Cards and other leading private bank in India that account for 50% of all credit cards issued in India.

It has strong presence with total customer & user base of 2,11,886 & dealt with total processing volume worth of INR 699,099.6 million.

PayMate works with leading Visa commercial card-issuing banks to facilitate credit for both payables and receivables across supply chains. Visa holds ~3% stake in PayMate.

Product Offered

Financial Highlights

  • The revenue shot up by 11.7% for FY23 to INR 1,351 crore compared to FY22 when it was INR 1,209 crore. This phenomenal growth came because of reopening of the market, increase in user base & expansion to new territory.
  • Debt Equity Ratio is not relevant for the Company as it has negligible debt from past three years.
  • Revenue from operations primarily comprises of sale of services which includes domestic and transaction fees.
  • Revenue generated from overseas region specifically Singapore came from billing to Visa & revenue from providing project development and management services in connection with Visa’s Business solution provider.
  • The face value of the Equity Shares is INR 1 each.

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Financial Figures (INR Crore)

Particulars Mar-23 Mar-22 Mar-21 Mar-20 Mar-19
TPV 84,519 69,918.00 22,141.93 19,764.43 21,030.69
Total Income 1,351.59 1,209.22 349.02 217.36 236.04
Gross Profit 11.1 1.4 -0.1 -4.46 5.38
PAT -55.7 -57.74 -28.11 -27.77 -7.96
EPS -9.69 -10.65 -5.41 -5.41 -1.58
Cash Flow from Operations -13.5 -61.84 -12.83 -39.11 -7.23
Cash Flow from Investing 0.2 0.6 5.68 -13.12 -1.23
Cash Flow from Finance 12.4 62.08 -0.51 62.09 8.15

FY23 Performance Highlights & Future Projection

  • Total Purchase Volume (TPV) worth INR 85,519 crore processed in FY23.
  • FY23 Revenue has shown growth of 11% to INR 1,351 Crore from INR 1,209 crore in FY22.
  • Revenue is estimated to grow at CAGR ~25% in the next couple of years on a back of new deals & business expansion.
  • This will be led by growth in Paymate TPV which is projected to grow at CAGR ~27%.

Trends in TPV, Revenue & EBITDA over the years (INR Crore)

Particulars Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 Mar-24E Mar-25E
TPV 21,030.69 19,764.43 22,141.93 69,918.00 84,519.00 1,10,375.00 1,35,761.00
Revenue 236.04 217.36 349.02 1,209.22 1,351.00 1,722.00 2,142.00
EBITDA -6.91 -24.95 -25.6 -24.4 -30.5 3.7 61.9

The company has shown tremendous growth post pandemic with top-line reflecting more than INR 1200 (crore) & expected to grow further due to multiple reasons (India’s growth rate- 6.6, Govt push for digitalization & manufacturing sector, ease of lending & other services provided by PayMate). The firm invested heavily on automation during initial days to provide better service to its consumers & is committed to do so in future by minimizing the operational cost. Which is evident enough from their rapid growth and projections & soon will be reflected in their bottom line i.e., net profit in upcoming quarters. Revenues generated from the subscription-based model apart from cross border transaction, service & transaction charge pumps in huge revenue for the firm.

Indian Market Overview

Indian economy is witnessing an immense growth and heading towards USD 5 trillion mark by 2027. Currently, it is hovering around USD 3.5 trillion & as per latest update India’s GDP grew by 6.1% in the fourth quarter of 2022-23 to raise the yearly growth rate to 7.2 percent.

Major contribution from service sector (BFSI, IT industry) in the overall growth of Indian economy and government focus & investment towards manufacturing sector (infrastructure & MSME’s) will shrink the gap between these two sector & create a massive opportunity for fintech firms like Paymate. As there are close to 80 million MSME’s & as many vendors operating in India which do B2B transactions on a recurring basis but use different mode or channel (cash, cheque, DD etc) due to lack of options, can be overcome by Paymate.

  • Paymate has a strong presence in India, UAE, CEMEA (Central Europe Middle East & Africa) and APAC (Singapore & Sri Lanka) & is expected to bring in 25- 35% revenue from these regions alone (excluding India)
  • Paymate has generated part of its revenue by charging transaction fees for using commercial credit cards on their platform for making the payments. These transaction fees are based on the value of transactions transacted on their platform.
  • Future revenue and profitability are dependent upon expansion of their platform to the suppliers and vendors of their existing customers and onboarding more SMEs as users of their platform. Such users may then start paying for utilizing various additional services offered by PayMate such as GST and direct tax payments, which typically give higher margins, resulting in the organic growth of their platform.
  • Paymate has filed for an IPO to raise Rs 1500 crore/ $400 Million.
  • The face value of the Equity Shares is INR 1 each.

Investors

VISA & Venture Capitalist (Mayfield, Brand Capital, Lightbox etc)

Major Shareholders

Ajay Adiseshan, Probir Kumar Roy, Dhruv Pratap Singh, Aleaxander Kuruvilla, Uma Viswanathan, CXI Valley I LLC, Bennett Coleman, Rajat Yadav

Key Personnel

Ajay Adiseshan- (MD & Chairman)- is a serial entrepreneur with experience in building and leading successful technology companies.

Vishvanathan Subramanian - (CFO & Director)- is a certified Chartered Accountant and also a qualified Cost Accountant.

Buy or Sell Paymate India Unlisted Shares

For any queries, reach out to: unlisted@rurashfin.com or Call: +91 224157 1111