PayMate raises funds from Visa, Recruit Strategic Partners and others

PayMate, a business-to-business payments company, Monday said it has raised funding from Visa, Recruit Strategic Partners, Brand Capital, and existing investor Mayfair 101.

The company, which aims to raise a total of USD 25 million in the series-D round, plans to invest the funds to accelerate its expansion within India and internationally to the Central and Eastern Europe, Middle East, and Africa (CEMEA) region.

"We have raised funds from Recruit Strategic Partners, which is the venture capital arm of Recruit Co Ltd Japan), Brand Capital and Visa. Existing investor Mayfair 101 also participated. The series-D round will be open for 60 more days and we expect to raise USD 25 million in this round," PayMate founder and Chief Executive Officer Ajay Adiseshann told PTI.

He added that Visa was already a commercial partner for the company and is now coming onboard as an investor.

PayMate, however, did not disclose the valuation of the company after the transaction. It had raised USD 18 million cumulatively in its previous funding rounds.

The company's cloud-based platform enables enterprises to seamlessly automate and digitise their procurement to payment cycle, including vendor management, vendor and customer payments, invoicing, supply chain financing options, and others.

Over 35,000 businesses use PayMate's solutions and it processes about USD 5 billion in payments annually.

In March, PayMate had announced expansion into the CEMEA region in partnership with Visa.

"We will use the funds to add people, strengthen products and for expansion to newer markets," Adiseshann said.

The company has a team of about 70 people, which will see an addition of 30-50 people across geographies. These people are being hired across various roles like technology and sales.

PayMate expects to process transactions worth USD 8-10 billion this financial year.

As PayMate scales its international business, the company expects the segment to contribute about 25 per cent of the transactions volume processed on the platform, he said.