Pine Labs secures $82M funding from Actis, Altimeter

Digital payments and point of sales (PoS) deploying company Pine Labs has raised around $82 million (around Rs 530 crore) in a round which saw the participation of private equity fund Actis and California-based investment company Altimeter Capital.
The company did not comment on the valuation at which the funds were raised, but people in the know confirmed the round happened at a valuation of close to $900 million for the company.
The Noida-based entity plans to use the funds to expand operations globally and strengthen its technology solutions for retail merchants accepting digital payments.
Though the company did not reveal the details around the split between the primary and the secondary component, its CEO Lokvir Kapoor said: “A predominant part of the capital infusion has been in the form of primary.” Sequoia Capital, which is the largest shareholder of the company, did not participate in the round.
Pine Labs deploys PoS (point of sales) terminals at retail merchant locations across the country working closely with banks and payment aggregators. While these terminals accept all forms of digital payments, Pine Labs also offers merchants various types of software services which help promote their business. “We are not only looking at expanding our footprint, we are also creating new services for merchants like gift cards, loyalty programmes, and others,” said Kapoor while explaining his future plans.
Expanding its scope of operations, the company has started business in Malaysia and has also opened an office in Dubai. “We have received good response from these locations and centring these points we want to expand operations to other countries in the region,” said Kapoor. It has plans to expand to other Gulf nations and south-east Asian countries like Vietnam, Philippines, and Thailand.
As per filings with the Ministry of Corporate Affairs, which was accessed by ET, Pine Labs has reported a revenue of Rs 195 crore in the financial year 2017 against Rs 122 crore in 2016. While the company makes money per transaction, it also gets a share of its revenue from the services it offers to the merchants.
With the explosion of the PoS space after demonetisation, companies like Pine Labs have seen the maximum benefit. Pine Labs ramped up their terminals in the market quickly. While the opportunities in the card payment space has opened up with multiple companies vying for a share it remains one of the most competitive businesses as well. Last year, few of its biggest rivals raised significant funds from prominent investors.
Mumbai-based MSwipe, which also deploys payment terminals, raised more than Rs 200 crore. Even Bengaluru-based Innoviti Payments, which competes with Pine Labs, raised Rs 120 crore last year.

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