Pine Labs closes latest funding round at US$600m

Pine Labs has closed a $600 million financing round as the Asian merchant commerce platform sets the goal to explore the public markets within two years

Pine Labs, a payments and merchant commerce startup, has raised $315 million from an investment round with the entry of new investors such as Fidelity Management, as well as funds managed by BlackRock, Ishana, Tree Line, and Neuberger Berman Investment Advisers.

The fintech company announced in June that it had raised $285 million and now with today’s announcement Pine Labs will close the round at $600 million, ascribing it a post-money valuation of nearly $3.5 billion, CEO Amrish Rau told ET.

“Over the last year, Pine Labs has made significant progress in its Offline to Online strategy in India and the direct-to-consumer play in Southeast Asia. Our full-stack approach to payments and merchant commerce has allowed us to grow in-month merchant partnerships by nearly 100% over the last year. We are excited to bring on board a marquee set of new investors in this round and appreciate the confidence they have placed on the Pine Labs business model and our growth momentum,” said Rau.

Pine Labs offers a range of customised offerings for in-store and doorstep Payments, Pay Later at the point of sale, Prepaid Issuance, and Online Payments to large, mid-market, and small retailers. 

“Pine Labs has rapidly transformed from a single product company allowing retail acceptance of payments to a broader payments platform. The company now serves hundreds of thousands of merchants across payments acceptance on cards and UPI processing tens of billions of payment volume; the company also has the market leading PayLater offering with ~$3B in annualised PayLater transactions.” said Shailendra Singh, MD, Sequoia Capital.

 

Recent acquisitions

 

Over the past few years, Pine Labs has made several acquisitions to broaden its business. In 2019, it acquired QwikCilver, which leads the market in gift cards category. Earlier this year in April, it acquired Southeast Asian startup Fave for $45 million as it broadened its consumer side of the business. Over 6 million consumers across over 40,000 merchant establishments now have access to the Fave app, the start-up said.

“Through its acquisitions of QwikCilver and Fave, Pine Labs now has the market leading pre-paid platform in this region as well as the top consumer loyalty product in this market. With leadership across multiple categories, the company is very well positioned to help drive immense value to its merchant partners in India and across other SEA markets,” added Singh.

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