UPDATE: Temasek-backed fintech Pine Labs raises USD600M in funding round

U.S. one-dollar currency notes; taken September 2018.U.S. one-dollar currency notes; taken September 2018.

This article was originally published on Tuesday, 6 July 2021 at 15:37 SGT; it has since been updated to clarify the funding round is part of the venture round announced in May. 

Payments and merchant automation player Pine Labs has raised more than US$600 million in a funding round which saw the entry of new investors Fidelity Management & Research Company, funds managed by BlackRock, Ishana, Tree Line and a fund advised by Neuberger Berman Investment Advisers LLC.

IIFL AMC via its Late-Stage Tech Fund and Kotak also participated, Pine Labs said in a press release Tuesday.

The company is also backed by Sequoia Capital, Singapore state-owned investment company Temasek Holdings, Actis, PayPal and Mastercard, the statement said.

In 2018, Temasek and PayPal Ventures invested in a US$5 million “secondary market” round for the company, according to Crunchbase data.

The data show Pine Labs raised US$285 million in a venture round in May. Pine Labs told Shenton Wire the round announced Tuesday was part of the May venture round.

In May, Pine Labs said the round included Baron Capital Group, Duro Capital, Marshall Wace, Moore Strategic Ventures and Ward Ferry Management, as well as Temasek, Lone Pine Capital and Sunley House Capital.

“Pine Labs has rapidly transformed from a single product company allowing retail acceptance of payments to a broader payments platform. The company now serves hundreds of thousands of merchants across payments acceptance on cards and UPI processing tens of billions of payment volume; the company also has the market leading PayLater offering with around US$3 billion in annualized PayLater transactions,” Shailendra Singh, managing director at Sequoia Capital, said in the statement.

“Through its acquisitions of QwikCilver and Fave, Pine Labs now has the market leading pre-paid platform in this region as well as the top consumer loyalty product in this market. With leadership across multiple categories, the company is very well positioned to help drive immense value to its merchant partners in India and across other SEA markets,” Singh said.

Pine Labs said it has been profitable on an earnings before interest, tax, depreciation and amortisation (ebitda) basis for several years.

The company’s clients are large, mid-sized and small merchants across Asia and the Middle East. Pine Labs provides payments acceptance and services including inventory and customer-relationship management as well as digital gift card services.