PayPal, a digital payments company and Singapore based Temasek, a global investment company announced infusion of $125 million funding for a minority stake in Pine Labs. With this latest round of funding, the company’s valuation has just crossed the $1 billion mark.
Pine Labs which provides payment, retail automation, and loyalty services has entered the coveted ‘Unicorn’ club, a unique tag for the companies valued at $1 Billion. Recently in March this year, when the company raised $82 million from Actis Capital, it was valued at $800 million.
Lokvir Kapoor, CEO of Pine Labs said in a statement, “We’re teaming up with Temasek and PayPal at a time when the Indian payments market is at an inflexion point”.
The company tweeted saying “We are thrilled to welcome @Temasek and @Paypal on our journey to redefine the rapidly growing, dynamic payments space.”
We are thrilled to welcome @Temasek and @PayPal on our journey to redefine the rapidly growing, dynamic payments space. A huge thank you to them and our existing investors @Sequoia_India, @ActisLLP, Altimeter, Sofina and Madison India Capital for believing in our mission.
— PineLabs (@pinelabsindia) May 31, 2018
The ‘payments-processing’ firm was started by Rajul Garg (IIT Delhi alumni) in 1998, who later left the company in 2003 and went on to co-found Globallogic, a Digital Product Engineering company. Initially, Pine Labs was started as a specialty payment and loyalty solutions provider for close-user group applications for Retail Petroleum industry, according to Pine Labs website.
The company claims to offer its services to more than 75,000 retailers across India, helping them in payment acceptance. Accordingly to a report, currently, the PoS machines from Pine Labs are used at over 300,000 payment acceptance terminals, handling over 450 million transactions annually. The company claims that 15% of cashless transactions in India go through the company’s PoS terminals.
Sequoia Capital which holds the majority stake in Pine Labs will be taking a partial exit with this transaction, according to a statement.