PayMate Growth

The firm derives a significant portion of its total income from transaction fees paid by clients who use commercial credit cards on the platform to make payments. These transaction fees are depending on the amount of money traded on the site. Customers contributed $3.48 billion and $8.43 billion, or 99.82% and 99.97% of total revenue, respectively, for FY21 and the nine months that ended December 31, 2021.

The total Total purchase volumn(TPV) of the company has increased from 210.31 billion in FY19 to 221.42 billion in FY21 and further to 484.01 billion in the nine months ended December 31, 2021, while card-processing TPV has increased from 117.41 billion in FY19 to 187.14 billion in FY21 and further to 464.77 billion in the nine months ended December 31, 2021.

The firm has been losing money for many years, with a loss of roughly Rs. 28Crs in FY21. Even in the first nine quarters of FY22, revenue increased, but expenses increased as well, resulting in losses. But on December 31, 2021, the firm had 49,953 Customers, with 480 being Enterprise Customers and 49,473 being small and medium enterprises who subscribed to the basic plan ("SME Customers"). Instead of an increase in customers, the company is not able to generate good profits. Moreover, the employee benefit expenses have increased multiple-folds.

In terms of TPV processed in the nine months ended December 31, 2021 (464.77 billion processed between April and December 2021) using a commercial credit card, the company was the largest B2B payments player and one of the fastest growing providers of on-line, card-based payment-processing services in India.

EPS of the company is negative due to losses it faced. On 18 Dec. 2021, has split the Rs.10 equity share into 10 shares of Re. 1 each. Accordingly, the EPS has been adjusted for the subdivision of shares for the current and previous years presented in accordance with the requirements of the Indian Accounting Standard.

The company's book value is steadily increasing as a result of an increase in preference shares as a result of a private placement of shares worth and a reduction in losses, which has resulted in an improvement in reserves and surplus, all of which has resulted in an increase in the company's equity. 

The company's total assets decreased significantly in FY21 due to a decrease in cash and cash equivalents, including security deposits and short-term bank deposits. While we can see a sudden hike in assets in FY20, due to fixed deposits with banks, and security deposits held.

Cash flow from operations has improved from previous years due to Share Based payments to employees, but it is still negative, and as per source, it will be negative in FY22 as well.