The Mumbai-based fintech plans to raise ₹698 crore through a fresh issue and ₹302 crore via an offer for sale, as it seeks funds to scale its payments, gifting and rewards businesses.
Mumbai-based fintech company Paramotor Digital Technology has filed updated draft papers with India’s market regulator for a ₹1,000-crore initial public offering, moving a step closer to a listing after earlier receiving regulatory approval, according to reporting by The Hindu BusinessLine and The Economic Times. The proposed flotation combines a fresh issue of ₹698 crore with an offer for sale worth ₹302 crore by promoters Sonia Pankaj Asher and Rahul Anand.
The company plans to channel most of the new capital into expanding its customer base and strengthening its brand, while also increasing spending on technology and cloud infrastructure, office facilities and general corporate needs. Paramotor has also left room for a pre-IPO placement of up to ₹139.60 crore, which would reduce the size of the fresh issue if completed, according to the updated prospectus details reported by The Hindu BusinessLine.
Founded in 2016, Paramotor operates across four business lines: prepaid payment instrument programme management, digital gifting, rewards and loyalty services through its RewardOn platform, and enterprise technology services under DevStack. Its consumer-facing products include SpendPro and yayyy.shop. The Hindu BusinessLine said the firm’s rewards and loyalty division, launched in the second quarter of FY26, contributed 68.68% of revenue from contracts in that financial year.
The company’s recent growth has been sharp. According to the prospectus summary reported by The Hindu BusinessLine, consolidated revenue from operations rose to ₹60.31 crore in FY26, compared with ₹11.21 crore on a standalone basis in FY25, while revenue for the three months ended 30 June 2026 reached ₹252.77 crore and profit after tax was ₹23.81 crore. Transacting users increased to 1.58 million in FY26 from 43,269 a year earlier, with the company reporting a 99% retention rate. Motilal Oswal Investment Advisors and Equirus Capital are acting as book-running lead managers, with MUFG Intime India as registrar.
The filing also points to the wider market opportunity Paramotor is targeting. A Frost & Sullivan report cited in the prospectus said India’s digital gift card market was worth about $15.1 billion in calendar 2025 and is projected to grow at a compound annual rate of 17.4% through 2030. That backdrop helps explain why the company is seeking fresh capital as it tries to scale in a fast-expanding segment of India’s digital payments and rewards economy.
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