was the first to report in its May 17 edition that Pine Labs was in the final stages of talks to raise $300 million and that the total fundraise could swell to $400 million. Pine Labs’ valuation is pegged at over $3 billion, but the company did not disclose details.
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Pine Labs said this is the ‘first close’ of its ongoing funding round. Sources said it is in discussions to raise another $100 million in this round. The current round of financing also includes significant secondary transactions from the company’s founder, employees and early shareholders, Pine Labs said. While it did not give details on the size of the secondary share sale, it is estimated to be around $100 million in size.
“This is an exciting phase in our journey as we enter newer markets. We excel in enterprise merchant payments and now want to scale new frontiers in the online space as well, at the same time continue to power the credit and commerce needs of our offline merchant partners,” said Amrish Rau, chief executive officer at Pine Labs.
ET reported on Monday that new capital will be used to double down on its buy-now-pay-later product in India and enhance its other offering for merchants across India and South Asia.
“We are very excited to be a part of the technological transformation that Pine Labs is driving on the ground in payments and the multiple interlinkages and efficiencies it is able to create by providing faster, cost effective consumer access to a broader range of financial products such as BNPL (buy-now-pay-later), where it is driving a pioneering effort on behalf of the financial system. We are also excited about an Indian business being able to drive regional and potentially global adoption of its intellectual property and this represents significant optionality for the future,” said Amit Rajpal, CEO & portfolio manager at Marshall Wace Asia.
Currently, Pine Labs powers close to 5 lakh payment terminals across India and Malaysia in 3,700 cities. Pine Labs, by its own admission, claims to process digital payments worth over $30 billion annually.