Automating SMEs

Automating SMEs

PayMate is improving process efficiency and providing greater transparency in cash flows

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Ajay Adiseshann, Founder and CEO, PayMate (Photograph by Rachit Goswami)Ajay Adiseshann, Founder and CEO, PayMate (Photograph by Rachit Goswami)
B.S.Srinivasalu Reddy
  • Mar 3, 2020,
  • Updated Mar 4, 2020 8:40 PM IST

Nearly two decades ago, enterprise solutions such as ERP (enterprise resource planning) stormed the corporate world, offering broad and complex solutions. They created an impression that no space will be left for smaller business solutions providers. "But fintech firms cannot be swept aside given their ability to plug in where ERP solutions are weak, and provide niche offerings," says Ajay Adiseshann, Founder and CEO, PayMate, a B2B payments solution provider, and the winner of BT-KPMG Best Banks award in the fintech-payments category.

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"ERPs' IT legacy is all about millions of dollars in deployment and then management. Any change costs a lot. So, for them to change their model overnight is going to be impossible. Ours is transactional," claims Adiseshann, whose fintech firm PayMate is making an annualised transaction volume of $5 billion. Its platform caters to small and medium enterprises (SMEs) by automating invoicing, payables and receivables functions. Its product allows SMEs to extend payables and provide timely or early payments to suppliers. This improves their process efficiency and transparency in cash flows.

PayMate's Cloud-based platform enables SMEs to automate and digitise their entire procurement to payment cycle, including vendor management, vendor payments, invoicing, and supply chain financing options.

"As a platform, we work in conjunction with existing ERP systems. We are not trying to replace them. But there are core areas where we are better, and we will go deeper in those spaces and co-exist with existing IT systems. B2B payments is clearly a unique category in fintech," Adiseshann explained.

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PayMate had adopted a business-to-customer (B2C) model to start with, but changed to a B2B model as the latter had the advantages of business predictability and unit economics.

PayMate has as of now confined its operations to South Asia, mainly in India. It is associated with 50-60 large and medium enterprises, which in turn connect the fintech firm to 50,000 small businesses. Each small enterprise brings in its suppliers, vendors and dealers.

In July 2019, PayMate raised $25 million from investors including Visa, taking the total funds raised to $40 million. Those who funded the firm earlier are Mayfield Fund, Lightbox Ventures and Mayfair 101.

In March 2019, the company announced a global expansion in collaboration with Visa in 92 countries to provide its issuing financial institution clients in the Central and Eastern Europe, Middle East and Africa (CEMEA) region access to PayMate's platform. "Hopefully, in March 2020, we will be rolling out services in the UAE to be followed by Saudi Arabia in another couple of months, and in 12 to 18 months thereafter, across the GCC (Cooperation Council for the Arab States of the Gulf, formerly known as Gulf Cooperation Council)," says Adiseshann. PayMate claims to be the first Indian B2B payments company to have expanded its footprints in the international market.

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Having built critical mass in the form of over $5 billion of annualised transaction volume on its platform, PayMate is setting its sights high - at $8-10 billion - during the current year.

Nearly two decades ago, enterprise solutions such as ERP (enterprise resource planning) stormed the corporate world, offering broad and complex solutions. They created an impression that no space will be left for smaller business solutions providers. "But fintech firms cannot be swept aside given their ability to plug in where ERP solutions are weak, and provide niche offerings," says Ajay Adiseshann, Founder and CEO, PayMate, a B2B payments solution provider, and the winner of BT-KPMG Best Banks award in the fintech-payments category.

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"ERPs' IT legacy is all about millions of dollars in deployment and then management. Any change costs a lot. So, for them to change their model overnight is going to be impossible. Ours is transactional," claims Adiseshann, whose fintech firm PayMate is making an annualised transaction volume of $5 billion. Its platform caters to small and medium enterprises (SMEs) by automating invoicing, payables and receivables functions. Its product allows SMEs to extend payables and provide timely or early payments to suppliers. This improves their process efficiency and transparency in cash flows.

PayMate's Cloud-based platform enables SMEs to automate and digitise their entire procurement to payment cycle, including vendor management, vendor payments, invoicing, and supply chain financing options.

"As a platform, we work in conjunction with existing ERP systems. We are not trying to replace them. But there are core areas where we are better, and we will go deeper in those spaces and co-exist with existing IT systems. B2B payments is clearly a unique category in fintech," Adiseshann explained.

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PayMate had adopted a business-to-customer (B2C) model to start with, but changed to a B2B model as the latter had the advantages of business predictability and unit economics.

PayMate has as of now confined its operations to South Asia, mainly in India. It is associated with 50-60 large and medium enterprises, which in turn connect the fintech firm to 50,000 small businesses. Each small enterprise brings in its suppliers, vendors and dealers.

In July 2019, PayMate raised $25 million from investors including Visa, taking the total funds raised to $40 million. Those who funded the firm earlier are Mayfield Fund, Lightbox Ventures and Mayfair 101.

In March 2019, the company announced a global expansion in collaboration with Visa in 92 countries to provide its issuing financial institution clients in the Central and Eastern Europe, Middle East and Africa (CEMEA) region access to PayMate's platform. "Hopefully, in March 2020, we will be rolling out services in the UAE to be followed by Saudi Arabia in another couple of months, and in 12 to 18 months thereafter, across the GCC (Cooperation Council for the Arab States of the Gulf, formerly known as Gulf Cooperation Council)," says Adiseshann. PayMate claims to be the first Indian B2B payments company to have expanded its footprints in the international market.

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Having built critical mass in the form of over $5 billion of annualised transaction volume on its platform, PayMate is setting its sights high - at $8-10 billion - during the current year.

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