[Funding alert] B2B payments startup PayMate raises Series D from Japan’s Recruit, Visa, and others
B2B payments startup PayMate on Monday said it has raised a new round of capital from Recruit Strategic Partners, the venture capital arm of Japanese firm Recruit Co. Ltd., Brand Capital, and payments behemoth Visa. Existing investor Mayfair 101 also participated as a part of this round.
Although the company didn’t disclose the amount, Livemint stated the funding to be around $25 million.
According to the startup, they will use the funds to accelerate expansion within India as well as to international geographies including Central and Eastern Europe, Middle East, and Africa (CEMEA).
In March 2019, PayMate announced its expansion into the Central Europe, the Middle East and Africa (CEMEA) region in partnership with Visa.
Speaking about the fund raise, Ajay Adiseshann, Founder and CEO, PayMate, said,
“We are very excited to have Visa come onboard as an investor, which will help complement our existing commercial partnership with them and help us scale faster by combining capital with Visa’s network. In addition, Recruit Holdings from Japan, our existing investor Mayfair101, and Brand Capital’s participation in this round further validates our business model, traction, and growth potential.”
Founded in 2006 and headquartered in Mumbai, PayMate is a cloud-based platform that enables enterprise and SME businesses to seamlessly automate and digitise their entire procurement to payment cycle (Procure-to-Pay).
While, Sam Subramaniam, CEO, Brand Capital added,
“We have seen a strong potential in the PayMate team and its proprietary platform, and truly believe they are adding great value to customers. Through this investment, we will be reaching new audiences and show them the best ways to make real-time payments and profit from PayMate’s unique capabilities.”
Other features of the platform include vendor management, vendor payments (Payables), customer payments (Receivables), invoicing, supply chain financing options, and many more.
Currently, PayMate claims that over 35,000 businesses use PayMate, and it processes approximately $5 billion in payments annually.
TR Ramachandran, Group Country Manager, India and South Asia said,
“There is an opportunity to bring efficiencies into the B2B payments supply chain via richer data and automated processes. PayMate’s platform makes it possible for businesses to replace time-consuming, expensive manual processes with digital ways to manage their working capital. At Visa, we believe it is critical to partner with local players who are bringing innovation to our global payments network, and our investment in PayMate reflects that.”
Through this partnership, Visa’s commercial financial institution clients will extend PayMate’s platform to their corporate and small business customers, giving them the ability to make faster payments using Visa commercial cards.