Digital retail payments platform Pine Labs raises $125m from Temasek, PayPal

Singapore’s state investment firm Temasek Holdings Pvt. Ltd and global payments major PayPal Holdings Inc have picked up minority stakes in Indian digital retail payments platform Pine Labs Pvt Ltd for a combined $125 million.

According to an official statement, Sequoia India, which first invested in Pine Labs in 2009, remains the largest shareholder in the company.

Pine Labs, which provides digital point of sale (PoS) solutions to merchants, had raised $82 million in an investment round led by Actis Capital along with Altimeter Capital in March, valuing the company at $800 million.

Pine Labs, which recently forayed into the Malaysian market, is looking to enter United Arab Emirates, followed by Saudi Arabia and Indonesia. The company has also been planning to expand into other Southeast Asian countries such as the Philippines, Indonesia, Thailand and Vietnam, as well as Qatar in the Middle East.

In its statement, Pine Labs said Temasek’s deep network in many Asian markets and knowledge of financial services companies will help its regional expansion plans.

Since it set up an office in India in 2004, Temasek has invested over $10 billion in the country. Its financial services portfolio in India includes online payment gateway solution provider BillDesk and online insurance selling platform Policy Bazaar.

“With the company expanding its product suite, building new layers of services for merchants, banks and other communities in the payment ecosystem, PayPal’s global presence and strong product expertise makes them an invaluable ally,” Pine Labs said.

In November last year, US digital payments company PayPal launched domestic operations in India, which allowed Indian consumers to make transactions at select online merchants. Merchants offering PayPal will be able to process both local and global payments through the platform, getting access to PayPal’s more than 200 million customers around the world and in India through a single integration.

Pine Labs claims to be processing 450 million transactions worth over $15 billion, on an annualized basis.

“Pine is also on track to originate over $1 billion of instant loans at point-of-sale terminals for card issuers and partner NBFCs this fiscal year, demonstrating the power and utility of our payments platform. The investments from Temasek and PayPal will help accelerate Pine’s growth,” said Vicky Bindra, CEO of Pine Labs.

With the government’s push towards digital payments, financial technology firms have been witnessing robust investor interest. It was recently also reported that Credit Saison of Japan and Temasek Holdings of Singapore are in talks with another Indian fintech firm Fino Paytech to buy a significant minority stake.

Also Read:

India: Payments firm Pine Labs raises $82m from Actis Capital, Altimeter, others

Temasek in talks to acquire stake in India’s Pine Labs for up to $400m

India’s Fino Paytech in talks with Temasek, Credit Saison to sell stake