Noida-based point-of-sales (PoS) deploying company Pine Labs has raised $125 million from Temasek, a global investment company headquartered in Singapore and PayPal, the largest Us-based digital payments company. Both Paypal and Temasek have acquired minority stakes in Pine Labs.
Sequoia India, which first invested in Pine Labs in 2009, remains the company’s largest shareholder. This round is followed by the round that Pine Labs had announced in March of this year when it raised $82 million from private equity fund Actis and California-based investment company Altimeter Capital. Till date, the company has raised total of $208 milion in four different rounds including this one.
Founded in 1998 by Rajul Garg, Tarun Upaday, Pine Labs offers a cloud-based PoS payments solutions, allowing merchants to accept credit or debit card payments, as well as latest methods such as e-wallets, QR code payment solutions and unified payments interface (UPI)-based solutions.
Pine Labs plans to use the deep network of Temasek in multiple Asian geographies to help Pine Labs scale up operations in the south east Asian region and further with the technological capabilities of PayPal, Pine Labs is looking to strengthen its tech play as well.
Moreover, as Pine Labs is expanding its product suite by building new layers of services for merchants, banks and other communities in the payment ecosystem, PayPal’s global presence and strong product expertise will make the ally with Pine Labs invaluable.
Speaking on the fresh funding, Lokvir Kapoor, founder of Pine Labs, said, “We’re teaming up with Temasek and PayPal at a time when the Indian payments market is at an inflexion point. The investments will help us move a step closer to our vision for building a world-class merchant-centric payments ecosystem.”
With $15 billion worth of transactions processed annually, Pine Labs is used by over 65,000 merchants across India’s retail, e-commerce, electronics, food and beverage, fashion, financial, pharmacy, telecom and airlines industries. The company aims to reach 1 million payment acceptance points in India in the next three to five years.
It may be recalled that just yesterday, an another payment startup Tonetag too raised $10 million from Amazon and Mastercard, along with others.
In February, ICICI bank bank had invested ₹99 Lakhs in Mumbai-based Biometric Payment Startup Tapits.
In January, Grab, a Singapore based on-demand firm, acquired Bangalore-based payments startup iKaaz. Ikaaz’ technology stack encompasses a range of innovations, such as NFC, QR-code, audio-based payments as well as bill payments, online payments and P2P.
Meanwhile, A recent study done by Fallible.co, a security firm working towards escalating the security of tech startups has made some shocking revelations. According to the study, many of the popular Indian startups whose services we avail online possess a potential credit card detail theft for the customers.
The above news was first reported in LiveMint.