Paramotor Digital Technology, a Mumbai-based fintech company focused on digital gifting, consumer spend management, and rewards platforms, filed its updated draft red herring prospectus (UDRHP) with the Securities and Exchange Board of India (SEBI) on Wednesday. According to reports from The Hindu BusinessLine, the company had initially filed its IPO papers through the confidential pre-filing route, following which SEBI issued its approval in August 2026. The financial technology company plans to raise ₹1,000 crore through the IPO, comprising a fresh issue of ₹698 crore and an offer-for-sale (OFS) of shares worth up to ₹302 crore. The equity shares have a face value of ₹10 apiece, with promoter selling shareholders Sonia Pankaj Asher and Rahul Anand each selling shares worth up to ₹151 crore through the OFS component. Motilal Oswal Investment Advisors and Equirus Capital serve as the book-running lead managers, while MUFG Intime India acts as the registrar.
As reported by The Hindu BusinessLine, the company plans to use ₹355 crore from the net proceeds of the fresh issue for customer acquisition, retention, brand promotion, and business development initiatives. Another ₹94 crore will be allocated towards technology development, cloud infrastructure services, and IT assets, while ₹38 crore will be used for investments in office infrastructure. The remaining proceeds will be utilized for general corporate purposes. The company may also consider a pre-IPO placement of up to ₹139.60 crore, with the amount raised through the placement being adjusted against the fresh issue, subject to applicable regulations.
According to reports from The Hindu BusinessLine, Paramotor Digital Technology operates through multiple platforms including digital gifting services through its yayyy.shop platform, spend management solutions through SpendPro, and rewards and loyalty solutions through RewardOn. The company also provides technology and platform development services to businesses under the DevStack brand. Additionally, it operates as a programme manager, business correspondent, and distribution agent for non-reloadable prepaid payment instruments. Founded in 2016, the company's business comprises four offerings: SpendPro, a consumer spend management platform for prepaid card users; yayyy.shop, a digital marketplace for gift cards and reward points; RewardOn, a digital rewards and incentives platform for corporates; and DevStack, which provides customised enterprise software applications and technology development services. Its customers include PPI issuers, gift card aggregators, corporates running rewards and loyalty programmes, and clients of its DevStack business.
As reported by The Hindu BusinessLine, Paramotor Digital Technology's financial performance has shown remarkable growth alongside the launch of new business verticals. Revenue from operations stood at ₹3.31 crore in FY24, ₹11.21 crore in FY25, and ₹60.31 crore in FY26 on a standalone basis, before increasing to ₹603.1 crore in FY26 on a consolidated basis. Profit after tax (PAT) rose from ₹4.94 crore in FY24 to ₹24.51 crore in FY25 and ₹59.14 crore in FY26 based on respective standalone and consolidated financial statements. For the quarter ended June 30, 2026, the company reported consolidated revenue from operations of ₹252.77 crore and PAT of ₹23.81 crore, with EBITDA standing at ₹32.62 crore and an EBITDA margin of 12.90%.
According to The Hindu BusinessLine, the company reported significant user growth with 1.58 million transacting users in FY26, compared with 43,269 in FY25 and 18,248 in FY24. Its user retention rate stood at 99% in FY26, against 87.98% in FY25 and 98.48% in FY24. The Rewards and Loyalty business, launched in the second quarter of FY26, contributed ₹414.23 crore, or 68.68%, of revenue from contracts with customers during the year. The PPI Program Management and Distribution business contributed ₹154.16 crore, or 25.56%, while DevStack accounted for ₹34.76 crore, or 5.76%. According to a Frost & Sullivan report cited in the prospectus, India's digital gift card market was valued at approximately $15.1 billion in CY2025 and is projected to grow at a CAGR of 17.4% through 2030.
