Cash-strapped PayMate pulls plug on Middle East ops after investor no-show

Mumbai: Cash-strapped PayMate has shut its Middle East operations and is scrambling to raise a fresh $20 million after a key investor failed to wire funds for over nine months, the company’s top executive confirmed to Mint.

The development marks a sharp turn for the Visa-backed B2B payments firm. Earlier this year, the company told Mint it was “actively expanding” across international markets. Instead, it is now dealing with unpaid salaries stretching up to nine months, senior exits and a stalled acquisition that was central to its growth ambitions.

This comes on the back of a long-delayed investment. London- and Middle East-focused Crimson Ventures, which had signed a definitive agreement with PayMate in March, is yet to transfer funds due to “internal issues at their end”, said founder and CEO Ajay Adiseshann.

Crisis deepens at PayMate

“The Crimson Ventures funding delay is because the fund is facing internal issues at its end, which has stalled its ability to invest. But given the impact these delays are having on our operations, we cannot wait any longer,” Adiseshann told Mint, adding that the company is now in discussions to close a new round by early December.

PayMate enables enterprises to automate business-to-business payments and manage commercial card-based transactions across their supply chains. The company operates eight subsidiaries in the Middle East, India, Australia, New Zealand, Singapore, the US and Malaysia.

The funding no-show has pushed PayMate into its deepest operational stress yet. It has shut down its underperforming UAE business–one of its key geographies and biggest markets earlier–and is now redirecting its focus to the Asia-Pacific region. This is the second major pivot after the company previously shifted its focus from domestic operations to expanding globally, given tighter regulations at home.

₹1,500 crore initial public offering (IPO) proposal in 2023″>PayMate had withdrawn its ₹1,500 crore initial public offering (IPO) proposal in 2023 after the regulator returned its draft prospectus. While it still hopes to revive the listing plans in FY26, the current funding uncertainty and operational strain are likely to push timelines further.

The firm reported revenue from operations of $162 million in FY24, marginally lower than $163 million in FY23 after the Reserve Bank of India’s crackdown on intermediary-routed card payments. Its net loss widened to $5.7 million in FY24, from $4.4 million the year prior.

Since launching in 2006, PayMate has raised around $70 million from Visa, Lightbox, Mayfield Fund, Brand Capital and Recruit Strategic Partners. It has tie-ups with Visa, Mastercard and several banks across the geographies it operates in.

The now-delayed $30 million infusion from Crimson Ventures was expected to be the company’s largest cheque in recent years. If the new $20 million round closes as expected, it will be PayMate’s first major capital raise since its aborted IPO attempt in 2022.

Salaries pending, exits rise

PayMate’s months-long liquidity crunch has severely hit employee payouts, with most staff not receiving full salaries for six to seven months, Adiseshann confirmed.

Several mid- and senior-level executives have resigned during this period, including Rajesh Khanna, chief commercial officer (CCO) for the UAE business; Pooja Chauhan, vice president of HR; and Nanda Harish, the legal counsel, the company confirmed. Close to half the workforce has either quit or been laid off as the company rightsizes operations and pares costs.

“In some cases, the salaries have not been paid in full since February — close to nine months — which has taken a toll on people and pushed many to leave,” said a former employee, requesting anonymity.

Two other former employees Mint spoke to confirmed this. The ex-employees estimated that close to 50% of the workforce has exited in the last 8-10 months, with remuneration pending for most of them.

Adiseshann said the company expects to clear outstanding dues for current and former employees once the new funding round closes.

Mint on 15 July first reported that PayMate India has delayed salaries for several employees since April 2025 due to cash-flow issues on the back of delayed funding and accelerated investments in international markets.

Acquisition in limbo

The delayed funding has also stalled PayMate’s acquisition of Indonesian fintech DigiAsia, a deal the company views as critical to stabilising revenue.

“Once this round closes, we will complete our DigiAsia acquisition. This will help us acquire customers, stabilise revenue and return to normal operations. We expect the acquisition to push us towards profitability,” Adiseshann said.

Australia and New Zealand continue to perform well, he added, and Indonesia is expected to become a key market once the acquisition is completed.

PayMate and DigiAsia have aligned on a stock-swap structure, and DigiAsia is preparing for a delisting announced in September. Adiseshann claims that despite the delays, the acquisition remains on track.

Queries emailed to DigiAsia did not elicit a response at the time of publishing the story.

“We expect a near-term revenue impact, but with the DigiAsia acquisition, we expect to reach FY25 revenue levels by the end of FY26, along with profitability,” Adiseshann said.