Pine Labs - Providing Financing And Retail Transaction

Sarika Anand Sarika Anand
Sep 18, 2021 9 min read
Pine Labs - Providing Financing And Retail Transaction

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Pine Labs.

It was in 2009 that Pine labs' real payments journey began when they ventured into the mainstream payments space to provide solutions to merchants, connecting them to banks and other financial services with their PoS machine.

They were acutely aware that merchants were seeking solutions to enhance their engagement with customers during the payment process. So, the company partnered with banks and payment aggregators and ensured their PoS machine could process all forms of digital payments.

Pine Labs - Company Highlights

Startup Name Pine Labs Pvt. Ltd.
Headquarters Noida, India
Industry Fintech
Founded 1998
Founders Lokvir Kapoor, Rajul Garg, Tarun Upadhyay
CEO Amrish Rau
Website www.pinelabs.com

Pine Labs - About and How it Works?
Pine Labs - Logo and its Meaning
Pine Labs - Founder and History
Pine Labs - Mission
Pine Labs - Latest News
Pine Labs - Products and Services
Pine Labs - Business Model
Pine Labs - Revenue and Growth
Pine Labs - Funding and Investors
Pine Labs - Acquisitions
Pine Labs - Competitors
Pine Labs - Challenges Faced
Pine Labs - Future Plans
Pine Labs - FAQs

Pine Labs - About and How it Works?

Pine Labs is an Indian merchant platform company that provides financing and last-mile retail transaction technology, founded in 1998.

Every day merchants use Pine Labs PoS machines to increase revenue whilst reducing costs, complexity, and risks. This gives Pine Labs a unique opportunity to participate in their growth journey. They focus on merchantsโ€™ needs, revenue generation strategies, last-mile retail transaction technologies, data analysis, and experiences for their shoppers and customers. They offer a full-stack merchant platform that is a unique blend of technology and financial solutions.

Pine Labs' solutions, which are used by merchants from diverse sectors, are used by over 100,000 merchants in India, and several other Asian countries. In India alone, the companyโ€™s cloud-based platform powers over 350,000 PoS in over 3,700 towns.


Pine Labs - Logo and its Meaning

The logo has a bright green double arrow symbol pointed Northeast, and denotes growth, prosperity and optimism.

Pine Labs Company Logo
Pine Labs Company Logo

Pine Labs - Founder and History

The founders of Pine Labs are Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay.

In the beginning, the company's focus was clearly on large-scale, smart, card-based payment and loyalty solutions for the retail petroleum industry. It was in 2009 that their real payments journey began when they ventured into the mainstream payments space to provide solutions with their PoS machines to merchants, connecting them to banks and other financial services. They partnered with banks and payment aggregators and ensured their PoS machines could process all forms of digital payments.

By 2012, Pine Labs had redefined their payment technology offerings and grown into a company that pioneered the smart, cloud-based unified point-of-sale platform, designed to reduce costs and drive revenues for retailers. Their alliances with top banks and brands gave them the ability to offer multiple services to the merchant through their platform.

Thus, they evolved into a merchant platform that encompasses solutions around payments, risk assessment, multi-channel analytics, merchant lending and insurance, brand offers, cashback, integrated billing, and more. They have a network of 21 financial services institutions and 100 brands in the company's network.

The year 2017 saw Pine Labs lay their first global footprint when they entered Malaysia with an exclusive partnership with CIMB Bank. And today, Pine Labs is well into building the worldโ€™s most robust merchant platform that brings together technology and financial solutions to meet every need of the modern merchant.


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Pine Labs - Mission

Pine Labs' mission statement says, "Maniacal focus on creating a product and services platform that widens access and accelerates commerce for merchants in each local market we operate in."

Pine Labs - Latest News

  • September 13, 2021 - Pine Labs changed its name from Pine labs Pte to Pine Labs Limited and is looking to rush to make its Singapore-based holding entity public, according to the regulatory filings of the company. ย 
  • Pine Labs is working towards an IPO by March 2022
  • Dec 2020 - Pine Labs now works with Mastercard to deliver a range of card and real-time payments
  • Nov 2020 - Former Square, Facebook senior executive Gokul Rajaram joins Pine Labs as advisor
  • July 2020 - Pine Labs appoints former First Data India MD, Nitish Asthana as COO.

Pine Labs - Products and Services

The company provides mobile point of sale (PoS) machines that allow merchants to accept credit and debit card payments. Some offerings of Pine Labs include Instant EMI, Instant Discounts, Cashback Programs, PaybyPoints, Loyalty Solutions, e-Wallet, Targeted Promotions, Dynamic Currency Conversion, and Gift Solution.

Pine Labs - Business Model

After two decades of working closely with merchants, Pine Labs now help merchants sell more, grow more, and build more with greater efficiency. They serve the merchantsโ€™ omnichannel needs. By leveraging technology and domain expertise, they cater to merchants of all sizes helping them to thrive in the changing global marketplace.

The Pine Labs business model is altered as per its merchants' needs. They introduced advanced, cloud-based point-of-sale (PoS) machines that enhanced their engagement with customers during the payment process. Pine Labs has restructured the payment technology space whilst contributing hand in hand to the world's digital economy as well. They are also one of the oldest fintech companies in India.

Pine Labs - Revenue and Growth

Pine Labs has a network of over 150K merchants across 3700+ cities in India and Malaysia.

Transactions on Pine Labs machine can be initiated by cards, QR codes, or phone number billing. The company also offers working capital loans, loyalty services via PinePerks etc.

Some of its partners include Apple, Google Pay, Samsung, Sony etc. The company has raised $310.8 Million from investors such as Sequoia India, PayPal, Temasek, Actis Capital, Altimeter Capital, Madison India Capital and Sofina.

In terms of financial performance, after the pivot in 2014, the company had first posted profits in FY17. However, with the increasing costs of growth in terms of expenses, it couldnโ€™t maintain the profitability and Pine Labs slipped to losses for FY18 and FY19.

Nevertheless, when we look at net loss figures, the losses of Pine Labs have jumped 4.46X, but excluding tax, the companyโ€™s losses had decreased marginally from INR 18.3 Cr in FY18 to INR 15.22 Cr in FY19. The impact could be seen of deferred taxes.

Pine Labs raised Rs 285 crores in the month of June, which included fresh issuance of shares and secondary sales that saw Baron Capital, Duro Capital, Marshall Wace, Moore Strategic Ventures, Ward Ferry Management as investors.

Furthermore, the company has also announced an upcoming second leg of the same fundraising round. This round is completed by Pine Labs on July 6, 2021, which saw the company mopping up a whopping $600 million, courtesy of Blackrock and Fidelity. The total valuation of the company has shot up to $3 billion due to latest fundraising rounds.


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Pine Labs - Funding and Investors

The Pine Labs funding had seen 10 rounds of funding in total and was currently valued at $3.5 Billion in July when it raised $600M. Pine Labs went on to raise $100M in the last Venture Round led by Invesco Developing Markets Fund, after which the IPO-bound company hadn't disclosed its valuation.

Date Round Amount Lead Investors
September 16, 2021 Venture Round $100M Invesco Developing Markets Fund
July 6, 2021 - $600M Fidelity Management & Research Co. and BlackRock Inc. and others
May 17, 2021 Venture Round $285M Baron Capital Group, Duro Capital, Marshall Wace, Moore Strategic Ventures and Ward Ferry Management and other existing investors
December 21, 2020 Secondary Market - Lone Pine Capital
Jan 24, 2020 Corporate Round - Mastercard
May 31, 2018 Secondary Market $125M PayPal Ventures, Temasek Holdings
Mar 13, 2018 Private Equity Round $22M Actis
Jul 29, 2017 Corporate Round $99M Flipkart
Apr 20, 2017 Secondary Market - Madison India Capital
Mar 25, 2009 Seed Round $1M Sequoia Capital India

Pine Labs has already passed a resolution according to the regulatory filings, where it has decided to convert its Singapore-based holding entity from private to public. The company has been renamed to Pine Labs Limited from Pine labs Pte to start preparing for its upcoming IPO. Pine Labs is eyeing its US listing within the next 10-12 months. The company is estimated to raise a $5 billion valuation in the potential IPO ahead.

Pine Labs - Acquisitions

Pine Labs has acquired gift solution provider, QwikCilver Solutions on Mar 19, 2019, for $110 million.

Pine Labs further acquired Fave, a Fintech platform from Southeast Asia, in a deal worth $45 million on April 13, 2021.

Pine Labs - Competitors

Pine Labs Top Competitors are :-

  • PayPal
  • PayKun
  • Stripe Connect
  • Payoneer
  • Apple Pay
  • GoCardless
  • Authorize.Net
  • Thryv
  • BlueSnap

Pine Labs - Challenges Faced

Indiaโ€™s digital payments' growth story has grabbed several eyeballs from international agencies as well as tech giants. From revolutionizing the use of QR codes to Unified Payments Interface (UPI) to enabling point-of-sale via mobile-like devices etc, the innovation in Indian digital payments' industry has awed the world.

While most of these innovative and disruptive ideas havenโ€™t reaped profits, but point-of-sale (PoS) player Pine Labs did in 2017. This, however, is not the case any more. Being one of the few Indian startups generating profits in FY17, the company spiraled into losses back in FY18. Continuing the trend in FY19 results, Pine Labs reported net loss of INR 13.5 Cr for the year, as against INR 2.5 Cr net loss in FY18.


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Pine Labs - Future Plans

Digital retail payments platform Pine Labs is gearing up for the next phase of its journey. It is planning to bring in the latest solutions that aim at proving better customer experience, foray into new markets and categories, and eventually go for an initial public offering (IPO) in the next 18 months.

In the next couple of years, the Noida-based firm is also expecting the total payment volume (TPV) on its transactions to rise more than four-fold to $100 billion from $23 billion.

That would put Pine Labs in the league of US-based financial and merchant services firm Square Inc, whose gross payment volume in the most recent fiscal period amounted to $84.65 billion, up from 65.35 billion in 2017, according to data platform Statista.

โ€œI think for the last 18 months, we are taking the journey of becoming a platform company,โ€ said Bindra, who before joining Pine Labs in 2015 led Visaโ€™s global product and solutions group in San Francisco.

In the next phase, Pine Labs is getting into providing loans to merchants in partnerships with banks as well as NBFCs and package other services such as insurance with it. It will also provide goods and services tax (GST) payments on behalf of these merchants.

Pine Labs - FAQs

What is Pine Labs?

Pine Labs is an Indian merchant platform company that provides financing and last-mile retail transaction technology.

What is hardware ID in Pine Labs?

The Hardware ID is a unique identification number for your machine. To activate your license, you will need to provide this number.

How does Pine Labs make money?

Pine Labs earns its revenue by leasing its devices to and from subscription charges, while its payment gateway partners and merchant banks impose transaction charges.

How does Pine Labs work?

Pine Labs is an Indian merchant platform company that provides financing and last-mile retail transaction technology, founded in 1998. 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.

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