Pine Labs Expands D2C Footprint with INR 88 Crore Shopflo Acquisition

Pine Labs, headed by Amrish Rau, is aiming to strengthen its relationship with direct-to-consumer (D2C) merchants. On that note, the brand on 25 April paid INR 88 crore to purchase Shopflo, a platform that optimises checkout processes. Shopflo allegedly processed transactions for 60 million clients through more than 1,000 e-commerce internet firms.

In March of 2025, Shopflo's revenue was INR 14.73 crore. It increased by 61% from INR 9.15 crore the year before. The creation, deployment, operation, and marketing of a D2C checkout platform are the core competencies of the company's business model. It provides services to enable engines and e-commerce.

Acquisition will Make Pine Lab Full Stack Payment & Commerce Entity

Today, channels are no longer defining trade, according to B. Amirsh Rau, CEO of Pine Labs. A unified, smart platform that can fuel a merchant's offline and online endeavours is essential. By acquiring Shopflo, Pine Labs has taken a giant leap toward creating a payments and commerce platform that can handle everything. As a result, it can better assist retailers from beginning to end, handling everything from in-store payments to online checkout and beyond.

Along with Ankit Bansal and Ishan Rakshit, Priy Ranjan—a former McKinsey consultant and venture capitalist—and IIT Madras alumni Ankit Bansal co-founded Shopflo Technologies. It asserts that conversion rates for merchants utilising Shopflo have increased by 15 to 20%. According to Priy Ranjan, co-founder and chief executive officer of Shopflo Technologies, the company set out to address a major problem in online retail: how to enhance the checkout process for both customers and businesses. By teaming up with Pine Labs, Shopflo can expand its capabilities to a wider range of merchants and establish a cohesive commerce ecosystem that generates quantifiable growth.

RBI Penalises Pine Labs

Pine Labs, a prominent fintech company, was fined INR 3.1 lakh by the Reserve Bank of India (RBI) for noncompliance with regulations pertaining to PPIs. Officials from the central bank issued a statement saying they discovered Pine Labs broke PPI rules by giving out full-KYC PPIs without doing the necessary KYC checks.

The RBI imposed the fine following an examination of the business's operations that took place from July 2024 to May 2025. KYC compliance is a vital regulatory requirement to combat fraud and money laundering, as full-KYC PPIs have higher transaction and balance restrictions than minimum-detail PPIs.