Fintech Unicorn, Pine labs secures $285 million in new funding round as it eyes expansion. The new round of funding valued the pine lab at $3 billion, 50% above its $2 billion in December 2020.
Existing investors of Pine Labs- Temasek, Lone Pine Capital and Sunley House Capital have participated in this funding round. Meanwhile, Duro capital, Baron Capital Group, Marshall Wace, Moore Strategic ventures and Ward Ferry management joined as new investors.
Founded by Lovkir Kapoor in 1998, Pine Labs enables businesses to accept online and offline digital retail transactions. B Amrish Rau has been appointed the CEO of the company towards the end of the financial year 2020 replacing Vicky Bindra, who had led Pine Labs since May 2018.
Pine Labs is the market leader in many categories. It has assumed over 95% of gift cards market share during FY19. Its point-of-sale machines are some of the most widely used in the industry. They are connected to the cloud and offer a range of additional services such as working capital to 140000 merchants on its platform.
More than a dozen banks and Fintech partners are integrated with the payments terminal of Pine Labs. So far, the company has deployed over 600000 payment terminals, a massively wide integration with the banking ecosystem.
Amid the pandemic, the startup was onboarding over 10,000 new businesses to the platform each month. It runs an analytics app based on debit card users of banks it has partnered with, determining the extent of credit for every cardholder. It then converts large payments into EMIs through its Pine Pay Later service, exclusively for its merchants on a priority basis.
Post the Unicorn Status, Pine Labs has been aggressively expanding its product and market reach, also planning for the IPO. It has recently acquired Kuala Lumpur-based payments and discovery platform Fave for $45 Mn. With this acquisition, Pine Labs plans to expand in Southeast Asian markets such as Malaysia, Singapore and Indonesia, where Fave has a stronghold of operations. Meanwhile, Fave will also launch its payments app in India.
“Through the acquisitions of QwikCilver and Fave, Pine Labs is now the number one pre-paid issuing platform as well as the top consumer loyalty product in this market. With leadership across multiple categories, the company is very well positioned to drive immense value to its merchant partners in India and other SEA markets,” said Shailendra J Singh, MD at Sequoia Capital.