Mastercard and Pine Labs on Friday confirmed an funding by the US funds and know-how big into the home-grown fintech firm, two days after ET reported citing sources that Mastercard had emerged as a robust contender to spend money on India’s largest point-of-sale options provider as a part of a $300 million financing spherical.
Mastercard and Pine Labs printed statements on their respective web sites confirming the funding with out nonetheless disclosing the phrases of the transaction.
They stated the deal was “part of a partnership to continue the rapid growth of convenient electronic payment options for consumers across the region.”
“Together, the companies will offer a suite of value-added services, including Pine Labs’ end-to-end stored value solutions which will replace the paper ones now widely used by companies, retailers and people in South Asia and many other markets,” in response to the assertion.
The transaction is anticipated to worth the Singapore and Noida-based Pine Labs at $1.5-$1.7 billion and can contain a mixture of major and secondary shares, giving Mastercard a agency footing within the fast-growing service provider buying phase.
As a part of the deal, enterprise capital fund Sequoia Capital, the most important stakeholder, will make a partial exit as Pine Labs vaults into the unicorn membership of privately held tech corporations with valuations of $1 billion or extra.
Sequoia has been invested in Pine Labs since 2009 and holds an estimated 68% stake. It may offload 15-25% to the incoming investor, sources had advised ET.
“This relationship is a great validation of the top-quality products that Pine Labs delivers to merchants,” Lokvir Kapoor, founder and chairman of Pine Labs, stated within the assertion on Friday.
“Together, we have a unique opportunity to use Mastercard’s global presence and technology infrastructure to enhance our growth and enable us to meet the growing needs of customers in India and beyond,” he stated.
According to the corporate, Pine Labs processes funds of $30 billion per yr and serves some 140,000 retailers throughout about 450,000 community factors, throughout India, Southeast Asia and within the Middle East.
“By joining forces with Pine Labs, we are reinforcing our strategy to deliver choice to consumers and to be the partner of choice for our customers in South Asia and around the world,” Ari Sarker, co-president for Asia Pacific at Mastercard, stated.