Point of sale payment solution company Pine Labs has raised fresh funding of Rs 707 crore from its Singapore based parent entity Pine Labs Pte. Ltd.
In a meeting held on 27th July, the company passed a resolution to issue more than 2.35 crore equity shares to the holding entity for a face value of Rs 1 and security premium of Rs 299 per share, raising Rs 707 crore.
Additionally, it was also resolved to allot 5,271 shares to Keith Boodle for Rs 15.81 lakhs as per the ROC filings accessed by Tofler. Boodle served as assistant vice president in the company from April 2012 to October 2014
With fresh capital infusion, the Noida based firm is now valued at around Rs 3,500 crore.
The funds will be used to complete the acquisition of Bengaluru-based smart card solutions service Qwikcilver which was taken over by Pine labs in March this year for around $110 million.
Launched in 1998, the company started operations as smart card providers for petroleum companies for their loyalty programs. In 2004 Pine Labs pivoted to provide Point Of Sale (POS) solutions and pursued VISA/EMV certification to process credit/debit card payments.
In 2009, the Fintech platform secured a seed round funding of $1 million from Sequoia Capital India to boost its technology prospects and venture into the mainstream payments space to provide solutions to merchants. Currently, it has investments from industry giants such as PayPal, Temasek Holdings and Madison capital.
Pine Labs has also partnered with non-banking finance companies (NBFCs) to provide working capital loans to its merchant clients for a tenure of 3 months up to 2 years to fulfill their inventory requirements. Employing this multipronged approach, the digital payments platform is seeking to provide a complete ecosystem of financial services to vendors and business owners.
The Noida based company saw substantial growth in turnover after demonetization in November 2016 which fueled the need for PoS machines all over India to support the cashless transactions policy promoted by the Union Government. Currently, Pine Labs provides PoS solutions in over 3,700 cities and towns to over one lakh merchants across India and Malaysia.
The development was reported by BusinessLine via PTI.