Pine Labs, a startup that offers trading terminals for payments, billing instruments and working capital, said on Monday it had completed the first completion of $ 285 million in funding as the diligent company expanded its offerings and built and scaled for nearly two decades. online payment portal.
Baron Capital Group, Duro Capital, Marshall Wace, Moore Strategic Ventures and Ward Ferry Management financed the new round of financing, while existing investors Temasek, Lone Pine Capital and Sunley House Capital also participated in it, the Indian startup announced.
The new round estimated Pine Labs at $ 3 billion, up from about $ 2 billion last December and $ 1 billion in early 2020. Pine Labs also operates in several markets in Southeast Asia.
B. Amrish Rau, CEO of Pine Labs, said in an interview with TechCrunch that the new round of financing allows for secondary transactions for its founder, employees and early investors, including Sequoia Capital. The circle could also be extended, he said.
“We are delighted to welcome investors such as Marshall Wace, Baron Capital Group, Ward Ferry Management, Duro Capital and Moore Strategic Ventures to the already virgin Pine Labs. “This is an exciting phase in our journey as we enter newer markets,”
The startup, which also considers PayPal among its investors, serves more than 140,000 merchants. Its payment terminal – also known as a sales machine – is connected to the cloud and offers merchants a number of additional services such as working capital.
Pine Labs’ payment terminal has integration with over two dozen banks and financial and technology partners. This sets Pine Labs apart from the competition, whose terminals usually have integration with only one bank. Each time a competing company enters into a new partnership with a bank, it must introduce new machines to the market. This makes the whole implementation expensive for both Fintech and the bank. (That’s why you often see a restaurant with multiple terminals on departure.)
Rau said Pine Labs, which has deployed about 600,000 payment terminals, has managed to gather such broad integration with the banking ecosystem because of its long-standing relationships and experience.
Pine Labs manages an analysis application based on the debit cards of the banks it has tied up to determine the amount of credit that will be granted to each cardholder. Pine Labs then converts large payments to EMI (equated monthly installments) using its Pine Pay Later app. in the middle of the pandemic at the end of last year, the launch included more than 10,000 new companies on the platform each month.
Pine Labs is the market leader in many categories. The startup, which acquired Qwikcilver in 2019, took over 95% of the market share of gift cards in the financial year ended March 2020. Its vending machines are among the most widely used in the industry.
“We are very excited to be part of the technological transformation that Pine Labs is driving on the spot with the payments and the many interconnections and efficiencies it is able to create by providing faster, cost-effective consumer access to a wider range of financial products such as BNPL (Buy Now Pay Later), where he leads a pioneering effort on behalf of the financial system. We are also excited about Indian business, which can stimulate regional and potential global acceptance of its intellectual property, and this is a significant option for the future, “said Amit Rajpal, CEO and portfolio manager at Marshall Wace Asia, in a statement.
Rau said the startup will bring in fresh capital to build and expand an online payment portal and engage with hospitals, pharmacies, governments and other organizations as the first set of customers. The launch also plans to make offers for Fave, a Southeast Asian startup acquired last month, available to retailers in India.