SBI invests $20 million in this payments provider ahead of $100-million IPO

SBI’s investment comes ahead of Pine Labs’ proposed IPO in the US, for which the company has reportedly appointed Morgan Stanley and Goldman Sachs as advisors.

Pine Labs
Pine Labs is eyeing a valuation of $6 billion through the IPO.

State Bank of India has invested $20 million in merchant payments firm Pine Labs, ahead of the company’s proposed IPO in the US later this year. Earlier in 2021, Pine Labs raised about $600 million, and followed it up with a $100 million fundraise from US-based Invesco Developing Markets Fund. Pine Labs wants to augment its merchant commerce offerings at the offline point-of-sale, and is now looking to scale up Plural, its newly launched brand of online payment products.

SBI’s investment comes ahead of Pine Labs’ proposed IPO in the US, for which the company has reportedly appointed Morgan Stanley and Goldman Sachs as advisors. It is eyeing a valuation of $6 billion through the public issue. In a media interview last year, Pine Labs CEO Amrish Rau had revealed that Pine Labs had been in touch with law firms, auditors, and bankers for a year in regards to the IPO, but has not decided on when it will list.

Though the discussions are in the early stages, Pine Labs could look to raise at least $100 million, said an earlier Economic Times report citing unidentified sources. Morgan Stanley and Goldman Sachs have been mandated for the IPO, and they are aiming for this year in the US, the report said.

Pine Labs, which provides merchant payment, PoS, and Buy Now Pay Later (BNPL) solutions, is expanding its Buy Now Pay Later (BNPL) business across India and Southeast Asia. The company has entered the consumer payment space with its April 2021 acquisition of Fave, one of Southeast Asia’s leading consumer fintech platforms, and has a presence in the Gift, Prepaid and Stored Value segment as well through its 2019 acquisition of Qwikcilver. The firm is backed by Sequoia Capital, Temasek Holdings, Actis, PayPal, and Mastercard amongst other global investors.

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