On Monday, Pine Labs, a finance merchant platform has completed the first round of a fundraiser at $3 billion valuation. The firm is also planning to expand its services to build and serve an online payments gateway. Pine Labs is primarily a startup that offer the merchants a payment terminal, invoicing tools and working capital.

The start-up stated that in the fundraising round, other companies like Baron Capital Group, Duro Capital, Marshall Wace, Moore Strategic Ventures and Ward Ferry Management tipped the new funding round, while existing investors Temasek, Lone Pine Capital and Sunley House Capital also actively participated in the same.

B. Amrish Rau, CEO, Pine Labs said that-

“We excel in enterprise merchant payments and now want to scale new frontiers in the online space as well, and at the same time continue to power the credit and commerce needs of our offline merchant partners.”

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Pine Labs was first founded in 1998 by Rajul Garg, who left the company in 2003 in active mode. The firm was taken over by Lokvir Kapoor, currently the firm’s chairman. At first, it focused on large-scale smart card-based payments and loyalty solutions for Indian metropolitan companies before moving to its current business model.

The start-up, which also seeks PayPal among its vital investors, serves around 140,000 merchants. Its payments terminal which is also known as point-of-sale machines, are connected to the cloud technology, and offer a range of additional services which are on a long term basis, such as offering working capital to the merchants.

Pine Labs operates as an analytics app on debit card base of banks with which it has tied up to determine the approximate of credit to be made available to every cardholder. Pine Labs then converts large payments into easily accessible EMIs (equated monthly instalment) using its Pine Pay Later application. Amid the pandemic late last year, the start-up was collaborating with over 10,000 new businesses to the platform each month.

Amit Rajpal, CEO & Portfolio manager at Marshall Wace Asia said that-

“We are very excited to be a part of the technological transformation that Pine Labs is driving on the ground in payments and the multiple inter linkages and efficiencies it is able to create by providing faster, cost effective consumer access to a broader range of financial products such as BNPL (buy-now-pay-later), where it is driving a pioneering effort on behalf of the financial system. We are also excited about an Indian business being able to drive regional and potentially global adoption of its intellectual property and this represents significant optionality for the future.”


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