Indian fintech firm Pine Labs posted a fourth-quarter profit on Monday, as a continued shift to digital payments drove demand.
The Temasek and Peak XV-backed company posted a profit of 593.6 million rupees ($6.23 million) for the quarter ended March 31, from a loss of 289.1 million rupees a year earlier.
It also posted a profit of 1.13 billion rupees for the fiscal year, marking its first full year of profitability, according to the firm.
Headquartered in India’s national capital region, Pine Labs offers payment solutions, including point-of-sale machines to merchants for card payments, and competes with the likes of Paytm PAYT.NS and PhonePe PHOP.NS.
Strong merchant payments positioning and improving monetisation in India have helped the fintech firm grow, with strengths such as affordability, value-added services and global expansion also helping.
Platform gross transaction value (GTV) for the financial year – the total value of all transactions flowing through a fintech’s platform before it earns any fees – grew 50%.
The GTV and revenue growth reflect platform depth and leave significant headroom ahead for monetisation, CEO Amrish Rau said.
The firm’s overall revenue rose 17% to 7.01 billion rupees in the March quarter.
Pine Labs, which has expanded to countries such as the Philippines and Sri Lanka, now has clients in about 20 countries, with the overseas business accounting for about 15% of its revenue.
Analysts at Emkay expect its devices segment – the business that provides card payment processing devices to merchants – to show calibrated revenue growth over the long term, while operationalisation contracts with oil marketing companies are poised to drive slightly higher revenue growth from the next quarter.
($1 = 95.2300 Indian rupees)
Reuters
