Paramotor Digital files for $119m IPO with SEBI

By Divya Shah

Why it matters: Paramotor Digital’s IPO filing highlights investor appetite for FinTech platforms focused on prepaid payments, rewards, loyalty programmes and digital gifting. The strong growth in users and revenue highlights the expanding opportunity in India’s digital commerce ecosystem, while the fundraising will support customer acquisition, technology investment and market expansion.

Mumbai-based FinTech Paramotor Digital Technology Ltd has filed an Updated Draft Red Herring Prospectus (UDRHP-I) with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO) worth $119 million (INR 1,000 crore). 

The offering will comprise a fresh issue of $83 million (INR 698 crore) and an offer for sale (OFS) of $36 million (INR 302 crore). Under the OFS component, promoters Sonia Pankaj Asher and Rahul Anand plan to sell shares worth up to $18 million (INR 151 crore) each. 

The company may also undertake a pre-IPO placement of up to $16.6 million (INR 139.6 crore), which would proportionately reduce the size of the fresh issue. 

Proceeds from the fresh issue will be used primarily for customer acquisition and brand promotion worth $42.3 million (INR 355 crore), followed by technology development and cloud infrastructure investments of $11.2 million (INR 94 crore), office infrastructure spending of $4.5 million (INR 38 crore), and general corporate purposes. 

Founded in 2016, Paramotor Digital operates across four business segments: prepaid payment instrument (PPI) programme management, digital gifting, rewards and loyalty solutions through its RewardOn platform, and enterprise technology services under DevStack. Its consumer-facing offerings include SpendPro and yayyy.shop. 

The company reported standalone operating revenue of $3.9 million (INR 33.08 crore) in FY24 and $13.3 million (INR 112.08 crore) in FY25. Revenue subsequently rose to $71.8 million (INR 603.15 crore) on a consolidated basis in FY26. 

For the quarter ended 30 June 2026, Paramotor Digital recorded consolidated revenue of $30.1 million (INR 252.77 crore) and a profit after tax of $2.8 million (INR 23.81 crore). 

Its Rewards and Loyalty business, launched in the second quarter of FY26, accounted for 68.68% of revenue from contracts during FY26, emerging as the company’s largest business segment.  

The company also reported significant user growth, with transacting users increasing to 1.58 million in FY26 from 43,269 in FY25. Paramotor Digital stated that it achieved a 99% user retention rate during the period. 

Motilal Oswal Investment Advisors and Equirus Capital have been appointed as the book-running lead managers for the issue, while MUFG Intime India will serve as registrar.