Latest news with #DigiAsia
Mint
15-07-2025
- Business
- Mint
Visa-backed PayMate withholds, delays salaries since April amid cash crunch
MUMBAI : Business-to-business (B2B) payments firm PayMate India Ltd has delayed salaries for several employees since April due to cash flow issues, four persons in the know toldMint. The delays come amid delayed funding and as the company has ramped up investments in international markets following a Reserve Bank of India (RBI) directive last year that destabilised its India business. According to three of the people with knowledge of the matter who did not want to be named, the 100 employees of the company have received incomplete salaries in the past four months. In April, employees across levels were impacted. While some junior staff were paid in the following months, several senior employees have been waiting for their dues for at least two months. July salaries have not been disbursed so far, the persons confirmed. There have been some junior and mid-level exits from the company due to the non-payment of salaries. Also Read: Startups prep for exits as Chinese backers find little love The company recorded revenue from operations of $163 million for FY23, which dropped marginally after the RBI action to $162 million in FY24. The net loss for FY23 was $4.4 million, which expanded to $5.7 million in FY24. The company has eight subsidiaries globally: PayMate Payments Services Provider LLC, PayMate Inc., PayMate Fintech (Pvt.) Ltd, PayMate India SPC, PayMate PTE Ltd, PayMate Fintech Co., PayMate Payment Services SDN Bhd (Malaysia), and Dunomo. International expansion PayMate confirmed the issue, attributing it to its ongoing 'ambitious" international expansion. In September 2024, the company announced a $400 million acquisition of Indonesian FinTech-as-a-Service firm DigiAsia's Indonesian operations. In June of this year, PayMate announced a strategic partnership with parent company DigiAsia to accelerate alignment ahead of the proposed acquisition of the Indonesian business. 'As with many rapidly scaling businesses, such phases can occasionally bring short-term operational challenges, including timing mismatches in cash flows. This has, unfortunately, impacted operational expenses in the short term," a PayMate spokesperson said, adding that the company has been actively resolving these issues. 'There have been salary disbursements in May as well as in June…All salaries will be regularised in July." Despite local headwinds, PayMate is betting on growth in international markets such as Australia, Malaysia and Dubai, which have shown strong traction, one source said. They added that the company chose to make investments 'very fast" in some markets to catch the growth momentum, including some Software as a Service (SaaS) investments in Australia and in pharmaceutical companies in Malaysia. On its website, the company said it is 'actively expanding" in key international markets such as Central Europe, Middle East, Africa and Asia-Pacific. Waiting for funds The firm is also awaiting a $30 million investment from Crimson Ventures, a US-based venture capital firm. The agreement was signed in March 2025, but the funds are yet to be received, sources said. 'Following completion of due diligence, they have entered into a definitive and binding agreement to invest in PayMate. The investment is progressing as planned and is a key component of our growth strategy," the spokesperson added. Also Read: Margins pressure, credit costs may plague banks in Q1 Factoring in the funding commitment, the company believes it does not require additional capital for core operations, and any future fundraising will be targeted toward strategic inorganic growth opportunities as part of our build-up to the proposed IPO. However, one of the sources quoted above said that the delay in funding might possibly be due to the financial strain on the company's balance sheet, making the investors second-guess their funding or at least wait until a clear road map is in place. Founded in 2006 by Ajay Adiseshann, Probir Roy, Vishvanathan Subramanian, and Anupam Mukerji, PayMate enables digital B2B payments for enterprises and SMEs across supply chains. It is backed by Visa, LightBox, Mayfield Fund, Brand Capital, and Recruit Strategic Partners. If the funding round from Crimson Ventures goes through, the company will have raised around $70 million to date. Regulatory impact The company's financial position also came under pressure earlier this year after the Reserve Bank of India restricted card network transactions routed through intermediaries. The move impacted PayMate and peers like Enkash. 'We have fully aligned our operations with evolving regulatory frameworks, including RBI guidelines concerning intermediary-led transactions. Our swift adoption of the Merchant-On-Record model has ensured continuity while further strengthening our compliance and governance framework," the company spokesperson said. In February 2024, RBI cracked down on unauthorised payments through business cards, saying that it has observed that Visa has arrangements to allow such payments through certain intermediaries to entities that do not accept card payments. Also Read: Why Adani public bond is a rarity in Indian debt market The Merchant of Record (MoR) model involves a third-party entity that legally handles customer transactions, taking on the responsibilities of payment processing, tax compliance, and chargeback management. The 'merchant-on-record' acts as the seller to the customer, managing the financial and legal aspects of the sale, while the actual business focuses on product development and customer acquisition. IPO bound The fintech is also in the process of reviving plans for its public listing. PayMate had to withdraw its earlier ₹1,500 crore public issue after the Securities and Exchange Board of India (Sebi) returned the draft prospectus in January 2023. 'We are moving forward with our IPO plans for FY26. Preliminary work on the Draft Red Herring Prospectus (DRHP) has commenced, and we expect to announce our investment banking partners in the coming weeks. The company is well-positioned for its public market debut," the spokesperson said. PayMate had first filed for an IPO in May 2022. The offer included a ₹1,125 crore fresh issue and a ₹375 crore offer for sale.
Yahoo
10-06-2025
- Business
- Yahoo
PayMate and DigiAsia enter strategic partnership
B2B payment entity PayMate and Fintech-as-a-Service platform DigiAsia have forged a partnership, aimed at expanding fintech offerings across several regions. The collaboration focuses on embedded finance, digital settlements, and AI infrastructure, targeting India, Southeast Asia, and the Middle East. It will lead to the creation of a fintech ecosystem that caters to B2B payments, cross-border finance, stablecoin infrastructure, and GPU-powered AI services. DigiAsia will implement PayMate's enterprise card platform across Southeast Asia, while PayMate plans to use DigiAsia's existing foreign exchange licences and payment infrastructure to facilitate B2B transactions across the Asia-Pacific region. The partnership will also introduce a settlement system for B2B transactions that supports an array of digital currencies, including USDT, USDC, BTC, ETC, SOL, and TRX. These digital currencies will be convertible into major fiat currencies such as the US dollar, euro, Singapore dollar, and British pound. In addition, DigiAsia's technological assets, which include 5,120 NVIDIA GPUs, will be employed to establish a GPU-as-a-Service platform, addressing the AI processing needs of sectors such as financial services, telecommunications, and public services. This follows PayMate India's agreement to acquire Indonesian operations of DigiAsia (DigiAsia Bios) for $400m in September 2024. PayMate managing director and founder Ajay Adiseshann said: "This isn't just a strategic tie-up-it's a foundational step towards building a unified fintech and AI backbone across emerging markets." DigiAsia co-CEO Prashant Gokarn stated: "We're excited to deepen our collaboration with PayMate. This partnership accelerates our mission to scale digital financial access across high-growth economies." PayMate services span commercial cards, invoice financing, and cross-border payments, targeting the financial operations of enterprises and small to medium-sized enterprises (SMEs). DigiAsia Corp provides embedded finance APIs for payments, digital banking, and infrastructure compatible with cryptocurrencies. Digiasia Bios is equipped with four licences through its affiliates, enabling it to offer digital payment, P2P lending, remittances, and digital financial services. "PayMate and DigiAsia enter strategic partnership " was originally created and published by Electronic Payments International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
Finextra
28-05-2025
- Business
- Finextra
but rising yields could rain on the parade: By Prakash Bhudia
Bitcoin just smashed through another all-time high, crossing $109,800 and lighting up the crypto crowd like it's 2021 all over again. The bulls are back, the memes are flying, and institutional money is pouring in. But just as things were starting to feel a little too euphoric, something old-school snapped everyone back to reality: the bond market. Because while Bitcoin's been partying, yields have been rising - and fast. And if there's one thing that can spook speculative assets, it's the sudden reminder that traditional finance still writes the rules on risk. Bitcoin's big moment - Fueled by ETFs and Institutional FOMO Let's start with the good stuff. Bitcoin didn't just edge past its previous high - it blew through it. Up 47% since April's dip to $75K, BTC's rally has been supercharged by inflows from U.S. spot Bitcoin ETFs, which racked up $7.4 billion in net inflows over just five weeks. That's not retail punting for fun - that's serious capital making a bet. Source: Coinglass It's not just ETFs, either. Futures open interest hit a record $75.14 billion, showing that traders are all-in on this trend. Add in corporate moves like Indonesia's DigiAsia Corp planning a $100 million Bitcoin treasury reserve, and it's clear: institutions aren't sitting this one out. The setup looked nearly perfect. Until it wasn't. Then the bond auction happened On 21 May, the U.S. Treasury held a routine 20-year bond auction. It should've been a non-event. Instead, it sent shockwaves through global markets. Investor demand was weak. The auction was priced at a 5.047% yield, slightly above the expected 5.035%. That tiny gap? It's called a 'tail' - and this one, at 1.2 basis points, was the largest since December. In bond-speak, that's code for investors who are worried. Source: Kobeissi Letter, X The fallout was fast: The S&P 500 fell nearly 80 points in half an hour The 10-year Treasury yield jumped to 4.586% The 30-year yield hit 5.067% Source: Kobeissi Letter That's not just noise. That's the market pricing in bigger risks: rising deficits, sticky inflation, and the possibility that the Fed won't be cutting rates anytime soon. Why bond yields matter for Bitcoin Crypto isn't in its own little universe anymore. Like it or not, Bitcoin now dances to the macro beat - and right now, the rhythm is changing. Here's how soaring yields ripple through crypto: Higher yields strengthen the U.S. dollar → Bitcoin tends to move inversely to the dollar Tighter financial conditions → Less liquidity and less appetite for high-risk trades Risk-off sentiment → Capital flows back into traditional safe havens like bonds, not Bitcoin So even if the fundamentals look great - ETF inflows, corporate adoption, bullish momentum - the mood can turn quickly when macro headwinds start picking up. And that's what we saw this week. The bigger picture: Trouble brewing in the background The weak auction wasn't a fluke - it's a symptom. The U.S. is running a 7% budget deficit, inflation is still lurking, and trade tensions are re-emerging as Trump ramps up his campaign trail. Investors are starting to say, 'If you want us to lend you money, you're going to have to pay more.' That adds pressure not just on the Treasury, but on every asset priced off yields - including crypto. Analysts at K33 Research warned that macro risks could inject fresh volatility into Bitcoin's uptrend, especially if upcoming headline events disappoint. Case in point: Trump's $TRUMP Gala and VP JD Vance's appearance at Bitcoin 2025 might move sentiment - but they're no match for Treasury market shocks. What traders should keep an eye on This doesn't mean the Bitcoin bull run is over - but the game just got more complicated. If you're in the market, here's what to watch: U.S. Treasury yields – particularly the 10- and 20-year Inflation prints and Fed commentary – to gauge rate expectations ETF inflows – a slowdown here would be a red flag Futures open interest – high levels mean potential for sharp reversals Right now, Bitcoin's still flying high - but the air is getting thinner. The next leg up (or down) could depend less on crypto news, and more on how the macro winds blow. Bitcoin technical outlook: Further rally or reversal? Bitcoin is still very much in a bullish trend. Institutions are coming in, ETFs are delivering inflows, and price action remains technically strong. But this week's bond market shock is a reminder that macro still matters. If yields continue rising and financial conditions tighten further, Bitcoin could lose altitude fast. For now, traders remain optimistic - but the rally is skating on thinner ice than it appears. So the big question remains: is this just a wobble, or the start of something bigger? The next bond auction might tell us more. At the time of writing, Bitcoin's upside momentum is meeting some resistance, with a wick forming at the top of the up move. However, the volume tells a story of sellers not moving in with enough conviction which could lead to more upside. If sellers fail to force a reversal, buyers could struggle at the $112,000 price level that's currently holding prices. If we see a slump, on the other hand, prices could find support floors at the $102,990 and $93,000 price levels. Source: Deriv MT5 Disclaimer The information contained within this article is for educational purposes only and is not intended as financial or investment advice. We recommend you do your own research before making any trading decisions. This information is considered accurate and correct at the date of publication. Changes in circumstances after the time of publication may impact the accuracy of the information. The performance figures quoted are not a guarantee of future performance.
Yahoo
24-05-2025
- Business
- Yahoo
A Small Food Firm Buys 21 bitcoin, Jumping on BTC Treasury Trend, Shares Fall Anyways
DDC Enterprise (DDC), an Asian food company, has announced the acquisition of 21 BTC as part of a long-term plan to incorporate the cryptocurrency into its corporate treasury. The company, led by founder and CEO Norma Chu, exchanged 254,333 class A ordinary shares for BTC, in a transaction valued at roughly $2.28 million, according to a press release. The move positions DDC among a growing cohort of public companies using BTC as a treasury asset. Two more purchases totaling 79 BTC are expected in the coming days, bringing the company's initial holdings to 100 BTC. In a shareholder letter issued last week, Chu outlined plans to accumulate up to 500 BTC within six months and aim for 5,000 BTC in three years. While companies adopting bitcoin as a strategic treasury asset often see major price rises, DDC saw the opposite. The company's shares dropped more than 12% on Friday's trading session, while the S&P 500 dropped 0.6% and the tech-heavy Nasdaq fell 1%. DigiAsia (FAAS), for example, saw its share prices surge more than 90% in a single trading session after announcing a $100 million BTC treasury plan earlier this month.
Yahoo
24-05-2025
- Business
- Yahoo
A Small Food Firm Buys 21 bitcoin, Jumping on BTC Treasury Trend, Shares Fall Anyways
DDC Enterprise (DDC), an Asian food company, has announced the acquisition of 21 BTC as part of a long-term plan to incorporate the cryptocurrency into its corporate treasury. The company, led by founder and CEO Norma Chu, exchanged 254,333 class A ordinary shares for BTC, in a transaction valued at roughly $2.28 million, according to a press release. The move positions DDC among a growing cohort of public companies using BTC as a treasury asset. Two more purchases totaling 79 BTC are expected in the coming days, bringing the company's initial holdings to 100 BTC. In a shareholder letter issued last week, Chu outlined plans to accumulate up to 500 BTC within six months and aim for 5,000 BTC in three years. While companies adopting bitcoin as a strategic treasury asset often see major price rises, DDC saw the opposite. The company's shares dropped more than 12% on Friday's trading session, while the S&P 500 dropped 0.6% and the tech-heavy Nasdaq fell 1%. DigiAsia (FAAS), for example, saw its share prices surge more than 90% in a single trading session after announcing a $100 million BTC treasury plan earlier this month. Sign in to access your portfolio
