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India's largest bank SBI to invest $20 mn in fintech firm Pine Labs

IBEF:  January 05, 2022

Pine Labs, a prominent merchant commerce platform, has received a US$ 20 million investment from the State Bank of India, India's largest commercial bank (SBI).

Pine Labs had previously raised US$ 600 million from a select group of new investors in 2021, followed by a US$ 100 million investment from the US-based Invesco Developing Markets Fund. Pine Labs is now planning to invest in scaling Plural, its newly announced brand of online payment products, in order to become an omnichannel partner of choice for merchants, in addition to enhancing its merchant commerce capabilities at offline point-of-sale.

Pine Labs, which is backed by Sequoia Capital, Temasek Holdings, Actis, PayPal and Mastercard amongst other leading global investors.

“We are thrilled to have the largest bank of India, the State Bank of India place their trust in us and welcome them in this journey where we are empowering merchants with seamless and secure payment experiences across offline and online platforms,” said B. Amrish Rau, CEO, Pine Labs. “In the last one year, several marquee investors have placed their trust in our business model and growth momentum and that is a gratifying feeling. This association with SBI is a personally satisfying experience as I had started my career selling financial services technology to SBI.”

Pine Labs' Buy Now Pay Later (BNPL) business is also booming in India and Southeast Asia. With its April 2021 acquisition of Fave, one of Southeast Asia's biggest consumer financial platforms, the firm has entered the consumer payment industry, and its 2019 acquisition of Qwikcilver has given it a prominent footprint in the Gift, Prepaid, and Stored Value segment.

Pine Labs closed a US$ 600 million funding round in July 2021, valued at US$ 3 billion. The money will be used to help the company reach its objective of going public this year or early next year.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.