Paramotor Digital Technology IPO

Strengths · 7

• 01Revenue from operations rose from Rs 33.08 crore in FY2024 to Rs 112.08 crore in FY2025 and Rs 603.15 crore in FY2026.
• 02Transacting users grew from 18,248 in FY2024 to 15,75,830 in FY2026, and the user retention rate was 99.00% in FY2026.
• 03Profit after tax from continuing operations was Rs 59.14 crore in FY2026 against Rs 24.51 crore in FY2025, with a PAT margin of 9.80%.
• 04The company had no borrowings in FY2024, FY2025, FY2026 or at 30 June 2026.
• 05Operating cash flow was positive at Rs 27.91 crore in FY2026, Rs 27.81 crore in FY2025 and Rs 6.78 crore in FY2024.
• 06Return on equity was 92.26% and return on net worth 63.14% in FY2026.
• 07The business is spread over four lines: prepaid card programs, reward points, RewardOn and DevStack. Top 5 customers gave 30.02% of FY2026 revenue against 99.96% in FY2025.

Risks · 10

• 01Rewards and Loyalty and DevStack are new, launched in FY2026. Six corporate customers used RewardOn and five used DevStack in the June 2026 quarter.
• 02Reward points revenue is booked on a gross basis, so revenue growth will not match profit growth. The EBITDA margin fell from 31.48% in FY2025 to 12.96% in FY2026.
• 03Revenue from the top two customers was 99.63% of revenue in FY2025 and 19.51% in FY2026. The mix has changed in one year.
• 04Operating cash flow was negative at Rs 46.30 crore in the three months ended 30 June 2026 while profit after tax was Rs 23.81 crore.
• 05More than half of the net proceeds, Rs 355.00 crore, is meant for customer acquisition, retention and brand promotion, which creates no tangible asset.
• 06Of the Rs 1,000.00 crore offer, Rs 302.00 crore is an offer for sale. The company gets none of it.
• 07The offer is made under Regulation 6(2) of the SEBI ICDR Regulations because the company does not meet the profitability condition in Regulation 6(1)(a).
• 08The Rewards and Loyalty business depends on three gift card aggregators and three gift card dealers for its catalogue.
• 09Both promoters hold 49.47% each and both are selling shares worth Rs 151.00 crore each.
• 10A GST order of Rs 3.05 crore tax with interest and penalty was appealed. Disputed income tax is Rs 0.28 crore against the company, which is 0.24% of net worth.

Paramotor Digital Technology Limited is a Mumbai-based financial technology company. It works in digital gifting, consumer spend management, and rewards and loyalty platforms. The company was incorporated in 2016 and operates only in India.

In its oldest business, it acts as program manager, business correspondent and distribution agent for prepaid payment instruments (PPIs) of up to Rs 10,000 issued by banks and RBI-licensed issuers. It earns program fees on these cards. It also distributes non-reloadable brand gift cards issued by merchants. Its SpendPro platform helps users of the prepaid cards manage their spending.

The Rewards and Loyalty business was launched in the second quarter of FY2026. It has two parts. The first is reward points and the yayyy Reward Points Card, sold on the yayyy.shop website and app and redeemed for gift cards and prepaid cards. The second is the RewardOn platform, where corporate customers design and distribute reward points to their users. The company had six corporate customers on RewardOn for the three months ended 30 June 2026.

DevStack is the technical and platform development services line, launched as a dedicated business in the first quarter of FY2026. It builds customised enterprise software. The company had five DevStack customers on 30 June 2026.

Revenue in FY2026 came from reward points (Rs 414.23 crore, 68.68%), program fees (Rs 154.16 crore, 25.56%) and platform or service fees (Rs 34.76 crore, 5.76%). The company had 15,75,830 transacting users in FY2026 against 43,269 in FY2025. The promoters are Sonia Pankaj Asher, the Executive Chairperson, and Rahul Anand, the Managing Director. The FY2026 numbers are consolidated, while earlier years are standalone.

The industry

The industry report by F&S estimates prepaid transactions in India at 2.0 billion worth Rs 700.9 billion in calendar year 2025, rising to 4.5 billion transactions and Rs 1,028.9 billion by 2030. The Indian digital gift card market is valued at about USD 15.10 billion in gross transaction value in 2025 and is expected to grow at a 17.4% CAGR from 2025 to 2030. The Indian rewards and loyalty market is projected to grow from USD 5.09 billion in 2025 to USD 10.57 billion by 2030, a 15.8% CAGR. The fintech software development market in India is estimated at USD 0.53 billion in 2025 and USD 2.15 billion by 2030.

Customer concentration: Top 5 customers gave 30.02% of FY2026 revenue and 99.96% of FY2025 revenue.