Mumbai-based PayMate, a business specializing in enabling businesses to automate and digitize their payments, is looking to raise $25m in its new Series D round and is now backed by Visa.
The major payment company joins venture capital firm Recruit Strategic Partners, The Times’ investment arm Brand Capital and Mayfair 101, the investment management firm, in the new round. The round is expected to close around the end of August or early September.
Ajay Adiseshann, founder and CEO of PayMate, has stated that the money would be used to expand both within India and in international markets. It is reportedly eyeing expansions into Europe and Africa. Earlier in 2019, PayMate began to operate in the United Arab Emirates.
The new $25 Series D round would add to the $18m already injected into the company through previous investments. For instance, it has already seen investments from Lightbox Ventures, the Mumbai-based venture capital firm that announced that it was looking to raise a new $200m investment round in September 2018.
Founded in 2006, PayMate offers cloud-based real-time payment solutions for SMEs. It claims to have more than 35,000 customers. Last year it acquired Z2P Technologies, a startup that offers lending technology, to offer a lending stack to its platform.
The announcement of Visa’s support to PayMate’s Series D round comes just as the payment giant just announced the acquisition of Payworks, a POS solution developer. Visa had previously signed a partnership with Payworks in 2018 and also contributed to its $14.5m Series B funding round.
The news of PayMate’s investment comes after FinTech Global’s research revealed investments into India’s FinTech sector looked set decrease in 2018 compared to 2017.
However, this slump could possibly be attributed to three major funding rounds raised by Flipkart. The e-commerce giant raised a total of $3.9bn across the three deals.
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