Fintech Pine Labs generates Rs. 1000 Cr revenue in FY22

Funding notice

• OfStartupStory | 7 January 2023

Pine Labs, a trading 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 fintech startup based in Noida, Uttar Pradesh has managed to cross Rs 1,000 crore in operating revenue.

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

Its core offering: point of sale (PoS) accounted for 60.5% of total collections in FY22, which grew 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 consists of fixed or variable fees collected from merchants, banks and brands.

Processing fees from issuing gift cards proved to be the second revenue generator, accounting for 33.1% of total revenue. In FY22, revenue from this vertical grew 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 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 switching fees, purchase entry fees, payment gateway fees and PoS machine deployment support costs, increased 2.4X to Rs 121 crore in FY22.

In FY22, the cost of spare parts and ancillary items such as paper rolls used in trade equipment, equipment sold and consumables decreased by 6% to Rs 44 crore. The company increased its total expenses by 24.4% to Rs 1,276 crore in FY22 from Rs 1,026 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 technological prowess and driven by their eagerness to innovate and solve problems. Fintech was founded in 1998 by Lokvir Kapoor and Rajul Garg.

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