IPO-bound Pine Labs gets $100 Mn from Invesco Developing Markets Fund

Merchant commerce platform Pine Labs is on a fundraising spree before its public listing in the US. After raising $600 million, the company has raised $100 million from Invesco Developing Markets Fund. 

The fresh funding has come at a time when Pine Labs’ Singapore-based holding entity had converted into a public company and renamed as Pine Labs Limited. This indicates that the company’s IPO preparation is in full swing. The company has reportedly appointed Morgan Stanley and Goldman Sachs as advisors for its IPO in the US next year that could value the company at around $6 billion.

“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. Very excited to have a marquee investor like Invesco join us in the journey,” said B. Amrish Rau, CEO, Pine Labs.

Pine Labs didn’t disclose the valuation in the fresh funding round, but it was valued at $3 billion in July when it closed a $600 million round led by Fidelity Management & Research Co. and BlackRock Inc.

Pine Labs’ early and major backer Sequoia capital has been reaping blockbuster returns through partial exits via secondary deals. It had made $455 million in the past few years including a $225-$230 million secondary in the past 10 months. 

Entrackr had exclusively decoded the recent secondary deal in August.

Before this round, Sequoia remained the largest stakeholder in the company with a 25.7% stake while its founder and chairman Lokvir Kapoor was the biggest non-institutional shareholder with 5.05% stake.

Apart from Point of Sales (PoS) business, the company offers Buy Now Pay Later (BNPL), invoice management, gifting solution and e-commerce enablement solutions to merchants. In April, the company acquired Malaysia-based payments platform Fave to enter the e-commerce enablement and consumer payments segments.

Pine Labs would become the fourth fintech company after Paytm, Policybazaar and Mobikwik to get closer to a public listing. The Vijay Shekhar Sharma-led firm is eyeing one of the biggest IPOs at a valuation of $25-30 billion.