Mumbai:Paramotor Digital Technology Limited, a financial technology company focused on digital gifting, consumer spend management, and rewards and loyalty platforms, has filed its Updated Draft Red Herring Prospectus-I (UDRHP-I) with the Securities and Exchange Board of India (SEBI) for its ₹1,000 crore IPO.
The company’s proposed IPO comprises a fresh issue of equity shares aggregating up to ₹698 crore and an Offer for Sale (OFS) aggregating up to ₹302 crore, taking the total offer size to up to ₹1,000 crore. The equity shares have a face value of ₹10 each. The OFS will comprise shares worth up to ₹151 crore each from promoter selling shareholders Sonia Pankaj Asher and Rahul Anand.
The company may consider a pre-IPO placement of up to ₹139.60 crore. If undertaken, the amount raised will be reduced from the fresh issue, subject to applicable regulations.
The net proceeds from the fresh issue are proposed to be utilised towards customer acquisition, retention, brand and business promotion initiatives amounting to ₹355 crore; technology development initiatives, cloud infrastructure services and IT assets amounting to ₹94 crore; investment in office infrastructure amounting to ₹38 crore; and general corporate purposes.
Founded in 2016, Paramotor Digital operates across prepaid payment instruments (PPIs), digital gifting, rewards and loyalty solutions, and enterprise technology services. The company’s offerings include SpendPro, a consumer spend management platform for prepaid card users; yayyy.shop, a digital marketplace for gift cards and reward points; RewardOn, an end-to-end digital rewards and incentives platform for corporates; and DevStack, its technical and platform development services business focused on customised enterprise software applications.
The company acts as a program manager, business correspondent and distribution agent for prepaid payment instruments issued by banks and RBI-licensed issuers. It also distributes non-reloadable brand gift cards issued by merchants. Its customers comprise PPI issuers, gift card aggregators, corporates using rewards and loyalty programmes, and clients of its DevStack business.
Paramotor Digital’s Rewards and Loyalty business enables consumers to purchase and redeem reward points, gift cards and prepaid cards through its digital marketplace. Through RewardOn, corporate customers can design, manage and distribute reward points to beneficiaries, who can redeem them through a customised catalogue of gift cards and prepaid cards. The company’s SpendPro platform facilitates consumer spend management for prepaid card users.
The company’s growth strategy includes expanding its user base across its offerings, enhancing technology and infrastructure, developing new products and services, increasing business partnerships and alliances, and strengthening the Paramotor brand.
Paramotor Digital is led by Sonia Pankaj Asher, Executive Chairperson and Whole-time Director, and Rahul Anand, Managing Director. Sonia Asher has over 24 years of experience across banking and payments, including leadership roles at Global Payments Asia-Pacific India and HSBC. Rahul Anand has over 17 years of experience, including management consulting, e-commerce and digital payments.
The company’s business strengths include its digital direct-to-consumer ecosystem spanning prepaid cards, gifting and rewards; a growing retail transacting user base with strong retention rates; technology platforms supporting scalable enterprise solutions; and its ability to develop and sustain partnerships.
Paramotor Digital’s consolidated revenue from operations increased from ₹3.31 crore in FY24 to ₹11.21 crore in FY25 on a standalone basis, before rising to ₹60.31 crore in FY26 on a consolidated basis. Profit after tax (PAT) increased from ₹4.94 crore in FY24 to ₹24.51 crore in FY25 and ₹59.14 crore in FY26, based on the respective standalone and consolidated financial statements.
For the three months ended June 30, 2026, the company reported consolidated revenue from operations of ₹252.77 crore and PAT of ₹23.81 crore. Its EBITDA stood at ₹32.62 crore, with an EBITDA margin of 12.90%. The company reported 1.58 million transacting users in FY26, with a user retention rate of 99%.
The company’s revenue profile has evolved with the launch of new business verticals. Its Rewards and Loyalty business, launched in the second quarter of FY26, contributed ₹414.23 crore, or 68.68% of revenue from contracts with customers, in FY26. The PPI Program Management and Distribution business contributed ₹154.16 crore, or 25.56%, while DevStack contributed ₹34.76 crore, or 5.76%. These figures reflect the different revenue-recognition bases disclosed in the prospectus, with Rewards and Loyalty and DevStack revenue recognised on a gross basis and PPI program fees recognised on a net basis.
The company reported 99% user retention in FY26, compared with 87.98% in FY25 and 98.48% in FY24. Its total transacting users increased to 1.58 million in FY26 from 43,269 in FY25 and 18,248 in FY24.
According to the Frost & Sullivan (F&S) Report cited in the prospectus, India’s prepaid transactions are estimated to reach 2 billion in CY2025, with a transaction value of ₹70,090 crore. By CY2030, the market is projected to reach 4.5 billion transactions valued at ₹1,02,890 crore. The Indian digital gift card market was valued at approximately US$15.1 billion in CY2025 and is projected to grow at a CAGR of 17.4% between CY2025 and CY2030.
The Indian rewards and loyalty market is projected to grow from US$5.09 billion in CY2025 to US$10.57 billion by CY2030, registering a CAGR of 15.8%. Meanwhile, India’s fintech software development market is estimated to grow from US$0.53 billion in 2025 to US$2.15 billion by 2030, reflecting opportunities across digital financial services and technology platforms.
Motilal Oswal Investment Advisors Limited and Equirus Capital Limited are the Book Running Lead Managers (BRLMs) to the issue. MUFG Intime India Private Limited is the registrar to the offer.