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MUMBAI : Business-to-business payments and services provider PayMate India has filed its draft prospectus with capital markets regulator, the Securities and Exchange Board of India, to raise 1,500 crore via an initial public offering (IPO), the company said.

The IPO comprises a fresh issue of shares aggregating to 1,125 crore and an offer for sale (OFS) of 375 crore.

The Visa and Lightbox venture-backed startup may also consider a private placement of equity shares of up to 225 crore, after consulting its lead bankers. If the placement is completed, the fresh issue size will be reduced.

Its promoters and investors, including Lightbox, American venture capital firm Mayfield, IPO Wealth Holdings, and RSP India Fund, will divest their stakes in the OFS.

Of the IPO proceeds, the company will invest 77 crore to expand its footprint in new markets and 228 crore for inorganic growth initiatives. It will use 689 in cash as collateral for its financial institution partners to improve margins.

Lightbox with a 27.31% stake in PayMate is the largest stakeholder on a fully-diluted basis.

As part of the OFS, Lightbox will sell shares of up to 127.38 crore, Mayfield FVCI Ltd will exit up to 15.66 crore ownership, RSP India Fund for up to 2.74 crore, and IPO Wealth will sell 17.01 crore worth of shares in PayMate.

Ajay Adiseshan, the founder and largest promoter group shareholder will sell shares worth 134.73 crore while Vishvanathan Subramanian, the chief financial officer, will divest shares of 3.29 crore. Other promoter group shareholders, including Uma Vishvanathan, G. Adiseshan, Dhruv Pratap Singh, Probir Kumar Roy, Alexander Kuruvilla and Anand Rajaram will also sell their stakes.

PayMate will reserve a a part of the IPO for eligible employees and allocate at least 75% to qualified institutional buyers, 15% to non-institutional bidders, and 10% to retail investors.

ICICI Securities, HSBC Securities and Capital Markets (India) Pvt. Ltd , JM Financial, and SBI Capital Markets are merchant bankers for the public issue.

PayMate’s other investors include Times group parent BCCL, American venture capital funds Kleiner Perkins, formerly Kleiner Perkins Caufield and Byers, and Sherpalo Ventures.

Founded in 2006 by Adiseshan, PayMate pivoted from a consumer-facing to a B2B digital payments platform for sectors including IT distribution, fast-moving consumer goods, paints, cement, auto auxiliary, financial services, travel, airline, media, manufacturing, and logistics. It is India’s largest B2B platform for on-line, card-based payment-processing. In December, it processed transactions of 7,773.1 crore. Its operating revenue rose 61% from 216.1 crore in FY20 to 348.4 crore in FY21.

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