Pine Labs, an India-headquartered digital payment technology provider backed by digital payment processor PayPal, financial services firm Kotak Mahindra Bank and payment services firm Mastercard, has picked up a $100m capital injection.
Investment manager Invesco’s Developing Markets Fund supplied the cash. It followed a $600m round two months earlier that included Kotak Mahindra, investment and financial services group Fidelity, IIFL AMC’s Late-Stage Tech Fund, Ishana, Tree Line, funds managed by BlackRock and a fund advised by Neuberger Berman Investment Advisers.
Founded in 1998, Pine Labs sells point-of-sale terminals used by retailers and other businesses to accept card payments. It also supplies the digital infrastructure needed for secure and fast online transactions.
The company has appointed Morgan Stanley and Goldman Sachs as advisers for a potential US-based initial public offering next year that could value it at $6bn, the Economic Times reported yesterday, citing sources with knowledge of the matter.
Amrish Rau, CEO of Pine Labs said: “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”
Pine Labs secured a $3bn valuation through a $285m round in May this year featuring Baron Capital, Duro Capital, Marshall Wace, Moore Strategic Ventures, Ward Ferry Management, Temasek, Lone Pine Capital and Sunley House.
That round included primary and secondary investments and involved an unnamed Pine Labs co-founder, employees and early investors selling stock.
Lone Pine Capital led a round totalling between $75m and $100m for the company in December 2020, Mastercard having supplied it with an undisclosed amount of funding in January of that year.
PayPal and Temasek invested $125m in Pine Labs in May 2018 after Actis had led an $82m round featuring Altimeter Capital two months prior. Sequoia Capital acquired a majority stake in the company in 2009 before providing $20m of funding in 2015, according to a YourStory report.