Fintech firm Paramotor Digital Technology secures Sebi's nod for IPO

New Delhi: Fintech and enterprise technology firm Paramotor Digital Technology Ltd has secured approval from Sebi to float an initial public offering (IPO), an update with the markets regulator showed on Thursday.

The company, which confidentially filed draft papers with the markets regulator Sebi for an IPO in May, obtained Sebi’s final observation on August 25.

The receipt of Sebi observation is a key step in the IPO process, following which the company can proceed with further preparations for the public issue, subject to applicable regulatory requirements.

The fintech firm submitted its draft papers under Sebi’s pre-filing route, which allows issuers to keep details like issue size and other key information confidential until a later stage.

This route has been increasingly favoured by companies seeking more flexibility in their IPO preparations and responding to market conditions before a public filing.

Motilal Oswal Investment Advisors and Equirus Capital are the book-running lead managers to the issue.

Incorporated in 2016, Paramotor Digital Technology operates a diversified technology platform catering to both consumers and enterprises across India. Its business spans consumer spend management, rewards and loyalty solutions, digital gifting and enterprise technology services.

Paramotor’s portfolio includes SpendPro, a prepaid card-based spend management platform; RewardOn, an enterprise rewards and loyalty management solution; yayyy.shop, a direct-to-consumer digital gifting marketplace; and DevStack, its enterprise technology and software development services vertical.

The company’s asset-light, technology-driven business model positions it to benefit from increasing digital adoption in consumer spending, enterprise engagement and business process digitisation.

Its yayyy.shop platform offers consumers access to prepaid and branded gift cards across multiple categories, while RewardOn enables enterprises to design and manage digital rewards programmes for employee engagement, customer loyalty and channel incentives. DevStack focuses on developing business-critical software applications and enterprise platforms, helping organisations build customised and scalable digital solutions.

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