Fintech Startup

Fintech Pine Labs generates Rs. 1000 Cr revenue in FY22

• ByStartupStory     |    January 7, 2023

Pine Labs, a merchant commerce platform, is back on track in FY22 after experiencing a drop in scale due to the pandemic in FY21. In the fiscal year ending March 2022, the fourth-largest valued fintech startup based in Noida, Uttar Pradesh has managed to surpass Rs 1,000 crore in operating revenues.

According to the company’s financial statements filed by its holding company Pine Labs Pte Ltd in Singapore, Pine Labs’ operating scale increased by 40.1% to Rs 1,017 crore in the last fiscal year from Rs 726 crore in FY21.

Its core offering: point of sale (PoS) accounted for 60.5% of total collections in FY22, which increased 38.8% to Rs 615 crore. PoS terminals from Pine Labs enable merchants to accept plastic cards and QR-based payments in their stores. The company’s PoS revenue is made up of fixed or variable fees collected from merchants, banks, and brands.

Processing fees from issuing Gift cards proved to be the second income generator, accounting for 33.1% of total revenue. In FY22, revenue from this vertical increased by 59% to Rs 337 crore. To be clear, Pine Labs charges processing fees based on the value of gift cards/vouchers activated or reloaded in accordance with the merchant agreement.

In July 2020, the company paid $45 million in cash and stock to acquire Southeast Asian consumer fintech firm Fave. Fave offers customers deals, vouchers, and e-cards, with revenue from these services totaling Rs 65 crore in FY22.

Transaction costs, which include service provider switch fees, merchant listing fees, payment gateway charges, and support charges for the deployment of PoS machines, increased 2.4X to Rs 121 crore in FY22.

In FY22, the cost of spares and ancillary items such as paper rolls used in merchant equipment, equipment sold, and consumables was reduced by 6% to Rs 44 crore. The company increased its overall cost by 24.4% to Rs 1276 crore in FY22 from Rs 1026 crore in FY21, adding another Rs 82 crore in legal and professional fees.

Pine Labs is contributing to the future of merchant commerce in Asia.  They use advanced fintech solutions built using their technology prowess and fueled by their zeal to innovate and solve problems. The fintech was founded in 1998 by Lokvir Kapoor and Rajul Garg.

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