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IPO-bound Pine Labs raises $100 million from US investment fund

Mumbai: Pine Labs, which plans to go public in the US next year, said on Thursday that it has raised $100 million from US-based Invesco Developing Markets Fund. The new funding comes just months after it
raised $600 million in two tranches from a host of global and domestic investors, which valued the firm at $3.5 billion. Pine Labs’s valuation in its latest round could not be immediately determined.

ET reported earlier on Thursday that the firm had
appointed Wall Street bankers Goldman Sachs and Morgan Stanley to steer its US listing and was in talks with investors to raise $100 million. Sources said the firm is eyeing a valuation of $6 billion for its IPO. The Noida-based firm is backed by Sequoia Capital, Temasek Holdings, Actis, PayPal and Mastercard, amongst others.

“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’re] very excited to have a marquee investor like Invesco join us in the journey,” B. Amrish Rau, chief executive officer of Pine Labs, said in a statement.

Pine Labs predominantly specialises in developing software and deployment solutions for point of sale (PoS) devices for storefronts. It has been diversifying its offerings on its newly developed software platform with enterprise solutions such as BNPL integration, invoice management, payment gateway and issuing prepaid cards. The third-highest-valued fintech firm in India behind Paytm and PhonePe, the startup posted a net revenue of Rs 800 crore in FY21, according to company estimates shared with ET in July.

Digital payments continue to see steady growth in India, fuelled by the Covid-19 pandemic. Consumer-focused fintech startups such as Paytm and Mobikwik have also filed their draft prospectuses to go public on domestic exchanges later this year.

Risk investors, both global and domestic, have flocked to the sector in India amid regulatory constraints in investing in China. Late last month, Prosus acquired digital payments processor BillDesk in a $4.7-billion all-cash deal.

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