Pine Labs is a financing and last-mile retail transaction technology. It was founded in 1998 by Lokvir Kapoor and Rajul Garg in Noida. Even though the company has seen a down because of COVID-19, it has managed to keep its position and back on track in this financial year.
As per the audited financial statements of the company, the operating revenue was INR 1017 crores for the year ended FY22.
The primary revenue source of the company, the revenue through Point of Sale (PoS) generated around INR 615 crores in FY22. The company earns fixed charges or variable fees from merchants, banks and brands for providing the PoS Gateway.
The processing fee from the Gift cards was the second source of revenue for the company. The revenue from this fee was around INR 337 crores.
The company earned INR 65 crores in FY22 through Fave, a subsidiary of Pine Labs that provides various deals, vouchers, and e-cards to customers and collection from these services stood at INR 65 crore in FY22.
The company also earned INR 64.48 crores in FY22 through interest on financial assets raised through several funding rounds.
On the cost sheet, the company spent INR 682 crores on employee benefits which also consists INR 187.3 crores as cost of ESOP. The transaction cost i.e., switch fees paid to service providers, listing fees to merchants, support charges for deployment of PoS machines and payment gateway charges accounted for INR 121 crores.
The cost of miscellaneous items like cost of paper rolls used in merchant equipment, cost of equipment sold, and consumables accounted for INR 44 crores during FY22. The company also incurred legal and professional fees of INR 82 crores in the year which took its total expenditure to INR 1276 crores.
As per the analysis, the financial ratios of the company stood as follows, its ROCE and EBITDA margin at -6.5% and -2.53% respectively in FY22. The company has spent INR 1.25 to generate INR 1 as its revenue throughout the year.