Latest news with #PayMate
Mint
a day ago
- Business
- Mint
Visa-backed PayMate withholds, delays salaries since April amid cash crunch
MUMBAI : Business-to-business (B2B) payments firm PayMate India Ltd has delayed salaries for several employees since April due to cash flow issues, four persons in the know toldMint. The delays come amid delayed funding and as the company has ramped up investments in international markets following a Reserve Bank of India (RBI) directive last year that destabilised its India business. According to three of the people with knowledge of the matter who did not want to be named, the 100 employees of the company have received incomplete salaries in the past four months. In April, employees across levels were impacted. While some junior staff were paid in the following months, several senior employees have been waiting for their dues for at least two months. July salaries have not been disbursed so far, the persons confirmed. There have been some junior and mid-level exits from the company due to the non-payment of salaries. Also Read: Startups prep for exits as Chinese backers find little love The company recorded revenue from operations of $163 million for FY23, which dropped marginally after the RBI action to $162 million in FY24. The net loss for FY23 was $4.4 million, which expanded to $5.7 million in FY24. The company has eight subsidiaries globally: PayMate Payments Services Provider LLC, PayMate Inc., PayMate Fintech (Pvt.) Ltd, PayMate India SPC, PayMate PTE Ltd, PayMate Fintech Co., PayMate Payment Services SDN Bhd (Malaysia), and Dunomo. International expansion PayMate confirmed the issue, attributing it to its ongoing 'ambitious" international expansion. In September 2024, the company announced a $400 million acquisition of Indonesian FinTech-as-a-Service firm DigiAsia's Indonesian operations. In June of this year, PayMate announced a strategic partnership with parent company DigiAsia to accelerate alignment ahead of the proposed acquisition of the Indonesian business. 'As with many rapidly scaling businesses, such phases can occasionally bring short-term operational challenges, including timing mismatches in cash flows. This has, unfortunately, impacted operational expenses in the short term," a PayMate spokesperson said, adding that the company has been actively resolving these issues. 'There have been salary disbursements in May as well as in June…All salaries will be regularised in July." Despite local headwinds, PayMate is betting on growth in international markets such as Australia, Malaysia and Dubai, which have shown strong traction, one source said. They added that the company chose to make investments 'very fast" in some markets to catch the growth momentum, including some Software as a Service (SaaS) investments in Australia and in pharmaceutical companies in Malaysia. On its website, the company said it is 'actively expanding" in key international markets such as Central Europe, Middle East, Africa and Asia-Pacific. Waiting for funds The firm is also awaiting a $30 million investment from Crimson Ventures, a US-based venture capital firm. The agreement was signed in March 2025, but the funds are yet to be received, sources said. 'Following completion of due diligence, they have entered into a definitive and binding agreement to invest in PayMate. The investment is progressing as planned and is a key component of our growth strategy," the spokesperson added. Also Read: Margins pressure, credit costs may plague banks in Q1 Factoring in the funding commitment, the company believes it does not require additional capital for core operations, and any future fundraising will be targeted toward strategic inorganic growth opportunities as part of our build-up to the proposed IPO. However, one of the sources quoted above said that the delay in funding might possibly be due to the financial strain on the company's balance sheet, making the investors second-guess their funding or at least wait until a clear road map is in place. Founded in 2006 by Ajay Adiseshann, Probir Roy, Vishvanathan Subramanian, and Anupam Mukerji, PayMate enables digital B2B payments for enterprises and SMEs across supply chains. It is backed by Visa, LightBox, Mayfield Fund, Brand Capital, and Recruit Strategic Partners. If the funding round from Crimson Ventures goes through, the company will have raised around $70 million to date. Regulatory impact The company's financial position also came under pressure earlier this year after the Reserve Bank of India restricted card network transactions routed through intermediaries. The move impacted PayMate and peers like Enkash. 'We have fully aligned our operations with evolving regulatory frameworks, including RBI guidelines concerning intermediary-led transactions. Our swift adoption of the Merchant-On-Record model has ensured continuity while further strengthening our compliance and governance framework," the company spokesperson said. In February 2024, RBI cracked down on unauthorised payments through business cards, saying that it has observed that Visa has arrangements to allow such payments through certain intermediaries to entities that do not accept card payments. Also Read: Why Adani public bond is a rarity in Indian debt market The Merchant of Record (MoR) model involves a third-party entity that legally handles customer transactions, taking on the responsibilities of payment processing, tax compliance, and chargeback management. The 'merchant-on-record' acts as the seller to the customer, managing the financial and legal aspects of the sale, while the actual business focuses on product development and customer acquisition. IPO bound The fintech is also in the process of reviving plans for its public listing. PayMate had to withdraw its earlier ₹1,500 crore public issue after the Securities and Exchange Board of India (Sebi) returned the draft prospectus in January 2023. 'We are moving forward with our IPO plans for FY26. Preliminary work on the Draft Red Herring Prospectus (DRHP) has commenced, and we expect to announce our investment banking partners in the coming weeks. The company is well-positioned for its public market debut," the spokesperson said. PayMate had first filed for an IPO in May 2022. The offer included a ₹1,125 crore fresh issue and a ₹375 crore offer for sale.
Yahoo
29-06-2025
- Business
- Yahoo
SAP Taulia (SAP) Partners with PayMate to Enhance B2B Payment Solutions
SAP SE (NYSE:SAP) is one of the 12 stocks that will make you rich in 10 years. On June 23, SAP Taulia, a subsidiary of SAP SE, announced a partnership with PayMate, a business-to-business (B2B) payment solutions provider. According to the agreement, PayMate's payment infrastructure has been made available to SAP Taulia's customers. drserg/ The integration will allow users to access a broader range of payment options, including bank transfers and virtual card payments. For instance, suppliers can now receive virtual card payments directly into their bank accounts without requiring manual intervention. The partnership also enables businesses to leverage their existing credit lines to optimize working capital, streamline supplier payments, and enhance overall financial efficiency. SAP Taulia stated that businesses will benefit from the improved platform, which will provide greater control and visibility in their financial operations. Additionally, the new platform streamlines payment processes and enhances payment security. Danielle Weinblatt, Chief Product Officer at SAP Taulia, stated that the partnership provides customers with 'future-forward ways to manage supplier payments' and strengthens their ability to offer flexible and efficient solutions across geographies. She emphasized unlocking liquidity trapped in supply chains. SAP SE (NYSE:SAP) is a German enterprise software company. It develops and sells cloud-based and on-premise solutions that help businesses manage operations like finance, supply chain, HR, and customer experience. Its core products include SAP S/4HANA (ERP), SuccessFactors (HR), Ariba (procurement), Concur (travel and expense), and SAP Analytics Cloud. While we acknowledge the potential of SAP as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and . Disclosure: None. Sign in to access your portfolio
Yahoo
10-06-2025
- Business
- Yahoo
PayMate and DigiAsia enter strategic partnership
B2B payment entity PayMate and Fintech-as-a-Service platform DigiAsia have forged a partnership, aimed at expanding fintech offerings across several regions. The collaboration focuses on embedded finance, digital settlements, and AI infrastructure, targeting India, Southeast Asia, and the Middle East. It will lead to the creation of a fintech ecosystem that caters to B2B payments, cross-border finance, stablecoin infrastructure, and GPU-powered AI services. DigiAsia will implement PayMate's enterprise card platform across Southeast Asia, while PayMate plans to use DigiAsia's existing foreign exchange licences and payment infrastructure to facilitate B2B transactions across the Asia-Pacific region. The partnership will also introduce a settlement system for B2B transactions that supports an array of digital currencies, including USDT, USDC, BTC, ETC, SOL, and TRX. These digital currencies will be convertible into major fiat currencies such as the US dollar, euro, Singapore dollar, and British pound. In addition, DigiAsia's technological assets, which include 5,120 NVIDIA GPUs, will be employed to establish a GPU-as-a-Service platform, addressing the AI processing needs of sectors such as financial services, telecommunications, and public services. This follows PayMate India's agreement to acquire Indonesian operations of DigiAsia (DigiAsia Bios) for $400m in September 2024. PayMate managing director and founder Ajay Adiseshann said: "This isn't just a strategic tie-up-it's a foundational step towards building a unified fintech and AI backbone across emerging markets." DigiAsia co-CEO Prashant Gokarn stated: "We're excited to deepen our collaboration with PayMate. This partnership accelerates our mission to scale digital financial access across high-growth economies." PayMate services span commercial cards, invoice financing, and cross-border payments, targeting the financial operations of enterprises and small to medium-sized enterprises (SMEs). DigiAsia Corp provides embedded finance APIs for payments, digital banking, and infrastructure compatible with cryptocurrencies. Digiasia Bios is equipped with four licences through its affiliates, enabling it to offer digital payment, P2P lending, remittances, and digital financial services. "PayMate and DigiAsia enter strategic partnership " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
