American payments giant PayPal Holdings Inc. and Singapore state investment firm Temasek team up and invested $125 million (Rs 843 crore) in Indian digital retail payments platform Pine Labs. The funding will help Pine Labs to expand its reach and presence in the country.
PayPal has been eyeing the e-payments space in India had earlier help meeting with the likes of PhonePe, but those discussions didn't work.
Were teaming up with Temasek and PayPal at a time when the Indian payments market is at an inflexion point, Lokvir Kapoor, founder of Pine Labs, said in a statement.
Pine Labs has been around for almost 20 years has gone through changes in business model, ownership and management. It entered into payments space in 2009 and continued to change according to the changing market. Now, the firm wanted to expand its operations overseas. With the current investment, Pine Labs has now entered the haloed unicorn club, an industry term referring to startups valued at more than $1 billion.
Pine Labs has developed a cloud-based payments platform, which allows merchants to accept traditional electronic payment methods such as credit or debit cards issued by any bank, e-wallets, QR code payment solutions or other UPI based solutions, on a single platform.
Through its cloud platform, Pine Labs has been able to offer retailers targeted customer-engagement campaigns; consumer analytics; and in-store consumer financing for partner brands that can be tailored to customers at the point of sale. Pine Labs has also partnered with non-banking finance companies to rapidly scale up the merchant lending business.
The company claims to be processing about 450 million transactions worth over $15 billion on an annual basis and says that it handles approximately 15% of Indias cashless transactions in physical retail stores, and is currently deployed at approximately 300,000 payment acceptance terminals.