IPO-bound Indian digital payments firm Pine Labs raises $100m from Invesco

Visual from Pine Labs website

Digital payments major, Pine Labs, which is eyeing a public listing in the US, has raised an additional $100 million as part of its new pre-IPO fundraise from US-based investment management company, Invesco Developing Markets Fund.

The current fundraise comes just two months after the company had closed its $600 million fundraise, at a valuation of $3 billion, from a slew of public market investors including Fidelity Management and Research Co., BlackRock; Ishana; Tree Line, a fund advised by Neuberger Berman Investment Advisers LLC, along with IIFL Asset Management Ltd.

The company is expected to lap on further funds as a part of this pre-IPO fundraise, this year, which could take its valuation up to $5 billion, said a person aware of the discussions.

“Over the last 18 months we have scaled our prepaid issuing stack, online payments, and also the buy now pay later (BNPL) offering. We continue to make progress in the larger Asian markets with our BNPL platform. We are very excited to have a marquee investor like Invesco join us in the journey,” said B. Amrish Rau, chief executive officer, Pine Labs.

Rau had earlier told Mint that Pine Labs was looking to take its merchant-led payment solutions to West Asia, next year. This year the company expanded its presence in the Southeast Asian market market, through a partnership with card network major and investor Mastercard.

Pine Labs’ expansion plans in Asia included doubling down on emerging economies of Thailand, Philippines, Vietnam and Indonesia. Earlier in April, the company also acquired Singapore-based loyalty cashback startup Fave for $45 million, to double down on the Singapore and Malaysia markets.

Through the Fave acquisition, Pine Labs was also looking to launch the platform in India and enter the digital consumer payments business in the country. It also had plans of taking its BNPL platform to Singapore and Malaysia, through Fave.

“The Invesco Developing Markets Fund is pleased to invest in Pine Labs, a leading fintech services company in India that fits our strategy of seeking high quality companies that have durable long-term growth potential,” said Justin Leverenz, chief investment officer of Developing Markets Equities at Invesco.

Pine Labs was powering close to 1 billion online transactions every month with this number expected to grow to almost 10 billion, in 12 months, Rau said earlier in May.

Over the next 24 months, Pine Labs looks to focus heavily on providing its merchants with online tools, helping them do commerce better in the offline world. It is expected to launch newer solutions for the offline merchants across segments of invoicing, billing, reconciliations and settlements.

The article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.