Ajay Adiseshan, founder of the company, said he is aiming to hit net profit in the current fiscal, as the company prepares to file its prospectus for a public offering in the next calendar year.
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Founded in 2006, PayMate is a business payout company which allows corporations to process vendor payouts and similar other transactions. The company is backed by card payment major Visa, which owns a 3% stake in the company.
According to filings made by the startup, it recorded operational revenue of Rs 1,350 crore in FY23, up by 11.6% from FY22. It also managed to bring down its losses to about Rs 56 crore in FY23, from Rs 58 crore a year ago.
Expenses went up to Rs 1,407 crore from Rs 1,267 crore in FY22, driven mainly by an increase in cost of processing the payout transactions. Its employee expenses remained flat at Rs 50 crore.
Adiseshan said that out of the total employee benefit expense, around Rs 20 crore would be expenses against their stock options. The company has a headcount of 110.
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“We have built a cloud- and API-based system which helps us expand operations without having to invest heavily in human resources,” he said. “So, even as we enter new markets, our employee costs should be only incremental.”In an interaction with ET on June 8, Adiseshan had spoken about expanding outside India into the Middle East, Africa and some parts of Europe and the Asia Pacific region.
“We could have been profitable earlier as well, but over the last two years, we have invested in expanding outside India,” Adiseshan said. “In this fiscal, those markets will stabilise, too.”
Last year, PayMate got around 7% of its revenue from international markets and that share is steadily increasing, the company said.
In terms of the number of clients, PayMate has onboarded 1,496 enterprise customers and 189,419 small and medium enterprises. In terms of revenue contribution, the share of small businesses is 15% and that of enterprise clients is 85%.
PayMate also issues Visa cards to customers through its platform. Currently, that stands at around 100,000. Businesses can use PayMate to make all forms of payment transactions. Besides card payments, PayMate also allows RTGS-based transactions, which are settled by the bank directly.
“While we make most of our revenues from card payments, we also allow other bank based payments for our customers, which helps us get greater visibility on the customer’s business volumes,” Adiseshan said.
Data from Tracxn shows that PayMate has raised $54 million in equity money and was valued at $804 million in 2022.
