Pine Labs

Pine Labs is an Indian company that provides financing and last-mile retail transaction technology. Founded in 1998, it is a unicorn startup, with a valuation of over US$5 billion.[3]

Pine Labs Pvt. Ltd.
IndustryFintech
Founded1998 (1998)
FounderLokvir Kapoor
Rajul Garg
Headquarters
Noida, Uttar Pradesh
,
India
Area served
India, Middle East, Southeast Asia
Key people
Lokvir Kapoor (Executive chairman)
B.Amrish Rau (CEO)
ProductsmyPlutus app, Plutus Smart, Pine Labs Genie,[1] Plural
ServicesInstant EMI, Instant Discounts, Cashback Programs, PaybyPoints, Loyalty Solutions, eWallet, Targeted Promotions, Dynamic Currency Conversion and Gift Solution
Revenue$173 Million[2] (2018)
SubsidiariesQwikcilver Solutions Pvt Ltd.
Websitepinelabs.com

It provides a merchant platform and makes software for point of sale (PoS) machines.[4] The company has more than 70,000 retailers across India, including major retail outlets such as Mark's and Spencer's Retail, Pantaloons, Shoppers Stop and Westside.[5] It has a presence in India, Malaysia and other parts of Asia.[6]

In January 2022, Pine Labs filed confidentially for an initial public offering (IPO) with the U.S. Securities and Exchange Commission seeking to raise about $500 million later this year, giving it a valuation of $5.5 – 7 billion.[7]

Some of its investors include LonePine, PayPal, Temasek, Actis Capital, Altimeter Capital, Sofina and Sequoia Capital.

History

The company was founded in 1998.[8] The company evolved from a petroleum automation retail solutions player to becoming a payments products and services firm for merchants. It has over 100,000 merchants in India and other Asian countries. Pine Labs platform powers over 850,000 PoS terminals in India.[9]

In 2004, Pine Labs ventured into mainstream payments and financial offerings for merchants.[10]

The company acquired a gifting startup Qwikcilver for $110 million in March 2019.[11][12][4]

In February 2019, the company partnered with RAKBANK to launch a payment platform in the UAE. In March 2018, Google Pay came into partnership with Pine Labs to capture the offline payments space in India.[13][14] The company was partnered with UnionPay in January 2019.[15]

In April 2021, Pine Labs acquired Southeast Asian deals and cash-back platform Fave for $45 million.[16] Fave's co-founders Joel Neoh, Yeoh Chen Chow, and Arzumy MD will continue working in the company to expand its presence across Southeast Asia and India.[17]

In August, 2021 the company suffered a data breach exposing the data of upto 500,000 of its users to hackers.[18]

Financial and Funding

Funding

In May 2018, Pine Labs raised $125 million (₹843 crores) from Temasek Holdings and PayPal, making it one of the unicorn startup companies with a valuation of over $1 billion.[19][20]

In March 2018, the company raised $82 million (₹530 crores) from Actis Capital, a private equity fund and Altimeter Capital, a California-based investment company.[21] It had also raised funds in 2015 from Sofina and in 2009 from Sequoia Capital.[22][23] As of May 2018, It has raised a total of $208 million.[19]

In May 2019, it was listed among the top 10 highest-funded startups in India by CNBC TV18.[6] In Jan 2020, it announced it had raised an undisclosed sum from Mastercard .[24] In December 2020, it raised US$75-$100 million led by US based billionaire Stephen Mandel's hedge fund Lone Pine Capital. After this funding Pine Labs valuation increased to more than US$2 billion. In July 2021, it raised $325 million at a valuation of $3.5 billion from Fidelity and Blackrock.[25]

Financial
Year Revenue (In ₹ crores) Profits/Loss (In ₹ crores) Source
FY 2019 491.29 -3.29 [26]
FY 2020 701.62 -57.72

Products and services

The company provides mobile point of sale (PoS) solutions that allow merchants to accept credit and debit card payments. Some of the offerings of Pine Labs include Instant EMI, Instant Discounts, Cashback Programs, PaybyPoints, Loyalty Solutions, eWallet, Targeted Promotions, Dynamic Currency Conversion and Gift Solution.[27][28][29][30]

See also

References
  1. Pine Labs Genie
  2. Khatri, Bhumika (1 November 2018). "Pine Labs Makes It Back To Loss Gang For FY18 With 64.6% Increase In Expenses". inc42.com.
  3. Upadhaya, Harsh (18 February 2022). "Pine Labs raises $150 Mn from Alpha Wave at $5 Bn valuation". entrackr.com.
  4. Arakali, Harichandan (19 March 2019). "Singapore's Pine Labs acquires gift card tech company Qwikcilver in $110 million deal". Forbes India.
  5. Gooptu, Biswarup; Bhakta, Pratik (28 August 2017). "Season may be right for Sequoia to exit Pine Labs". The Economic Times.
  6. "Here are the top 10 highest-funded startups in India". CNBC TV18. 29 May 2019.
  7. "Fintech startup Pine Labs to seek $500 million in US IPO". The Economic Times. 10 January 2022.
  8. Reuters (10 January 2022). "Indian fintech firm Pine Labs confidentially files for U.S. IPO". The Hindu. ISSN 0971-751X. Retrieved 4 July 2022. {{cite news}}: |last= has generic name (help)
  9. Abrar, Peerzada; Mishra, Bibhu Ranjan (12 June 2019). "Pine Labs gears up for next phase of growth, plans to foray into new mkts". Business Standard.
  10. Tyagi, Gaurav (30 July 2019). "Pine Labs secures Rs 707 Cr from Singapore-based parent company". Entrackr. Retrieved 4 July 2022.
  11. Bhakta, Pratik (20 March 2019). "Pine Labs acquires gifting startup Qwikcilver". The Economic Times.
  12. "Why Pine Labs is acquiring Qwikcilver". The Economic Times. 26 February 2019.
  13. Soni, Yatti (28 March 2018). "Google Pay Partners With Pine Labs To Capture Offline Payments Space In India". Inc42.com.
  14. "Google Pay looks beyond UPI, card payments in the works". The Economic Times. 10 May 2019.
  15. "UnionPay acceptance coverage in India continues to increase". Unionpayintl. 10 January 2019.
  16. "Pine Labs has just bought Fave for $45 million". Entrepreneurship News, Community, and Resources | BEAMSTART. Retrieved 13 April 2021.
  17. "Pine Labs acquires Southeast Asian startup Fave for $45 million". TechCrunch. Retrieved 13 April 2021.
  18. Ghosh, Debangana (17 August 2021). "Data breach at Pine Labs exposes 500,000 records". thehindubusinessline.com.
  19. Russel, John (31 May 2018). "PayPal and Singapore's Temasek invest $125M in Indian payment startup Pine Labs". TechCrunch.
  20. "India's Pine Labs Racks Up $125 Million". The Wall Street Journal. 31 May 2018.
  21. Bhakta, Pratik (13 March 2018). "Actis, Altimeter put $82 million in Pine Labs to grow roots". The Economic Times.
  22. Alexander, George Smith (13 March 2015). "Sequoia's Pine Labs Said to Seek Funding at $1 Billion Valuation". Bloomberg News.
  23. "Striking gold: A look at India's growing club of Unicorns". The Economic Times. 29 June 2018.
  24. "Tech in Asia - Connecting Asia's startup ecosystem". www.techinasia.com. Retrieved 27 February 2020.
  25. Manikandan, Ashwin. "Pine Labs gets funding at $3.5-billion valuation ahead of US IPO". The Economic Times. Retrieved 16 September 2021.
  26. "[What The Financials] Despite 43% Revenue Growth Pine Labs Continues Loss-Making Run In FY20". Inc42 Media. 10 February 2021. Retrieved 29 June 2022.
  27. "Pine Labs brings digital payment innovations to the MENA Region". Dubai: Saudi Gazette. 18 March 2018.
  28. "Pine Labs revenues grow 55% to ₹302 crore, while slipping into loss, in FY18". Theindianwire.com. 31 October 2018.
  29. Shaikh, Shadma (19 November 2015). "Use reward points, don't lose them". Asian Age.
  30. Gupta, Soumya (7 February 2017). "'Soon To Be Unicorns' : India's Top 40+". BusinessWorld.

List of Top 10 Fintech Companies In India 2022-23 by CEO Review Magazine

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