This makes Pine Labs the third most valued fintech company in India, behind Paytm and PhonePe.
The infusion of funds is done through a combination of primary and secondary participation of the sales by investors, said one person with the details.
The round was predominantly led by Lone Pine, the first investment of the US-based hedge fund in India, which over the past year has done big business in payments and credit-focused fintech companies around the world.
Amrish Rau, CEO of Pine Labs, told ET that the new funding will predominantly roll out in integrated stores across the country on its ‘Pay Later’ platform. The company will also strengthen its point of sale (PoS) implementations, while expanding its business in South Asia.
“Small businesses and consumers are rapidly adapting to digital commerce and contactless payment. We are also seeing a great uptake in Pay Later services … Time to invest heavily in offline and online commerce in India and Southeast Asia, ”said Rau, adding that the company will focus on maintaining positive earnings. before interest, taxes, depreciation and amortization (Ebitda) of margin to 2021.
Lone Pine’s investment follows the strategic investment made by the Mastercard card network in January, when Pine Labs achieved unicorn status.
However, the latest round did not feature existing investors, including Sequoia India, Temasek, Mastercard, Paypal, and Actis LLP.
Mala Gaonkar, portfolio manager and CEO of Lone Pine, said that the Gurugram-based fintech has been building on the push in India towards digital payments and transactional credit amid a gradual economic recovery from the Covid-19 pandemic.
“The Pine Labs team is taking advantage of key structural changes taking place in payments and fintech globally, including the integration of software and payments at the point of sale, the digitization of small and medium-sized businesses and the rapid adoption of offerings. now pay later, ”Gaonkar said.
The fintech startup has linked more than 150,000 merchants in India and South Asia, where it provides payment and commerce solutions through PoS devices. Its Pay Later platform currently has 35 credit providers such as IDFC Capital First, Zest Money, ICICI Bank among others.
The company has also strengthened partnerships with retail brands such as Croma, Samsung, Apple, among others, to offer platform services for merchants.
Rau said the company’s focus next year would be on three fronts.
“We want to continue to duplicate the ‘Buy Now Pay Later’ wave in India,” said Rau. “We also want to continue with the completion of store fronts, as more and more physical retail stores across the country seek to offer digital payments. Third, we want to expand our business in Southeast Asian markets. ”
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