Pine Labs 2.0, Pronto Shifts To Bengaluru & More

Pine Labs Moves Beyond The Swipe Machine

Timing, they say, is everything. Just 24 hours after the subscription window for its INR 3,900 Cr IPO closed, Pine Labs revealed it had secured the trifecta of payment aggregator, gateway, and cross-border licenses from the RBI. The market responded with a 14% pop on the listing day. But as the dust settles, can this regulatory edge translate into profits in a crowded market?

Pine Labs 2.0: Founded nearly three decades ago, Pine Labs has quietly morphed into a B2B powerhouse spanning API banking, loyalty, and cross-border payments. This diversification, fuelled by strategic acquisitions like Setu and Qwikcilver, signals ambitions beyond hardware into a high-margin financial services ecosystem.

A Deep Moat: In a sector where regulations have humbled giants, Pine Labs’ “boring” B2B focus has become its strongest moat. While listed peers like Paytm burned cash on low-margin devices and lending wars, Pine Labs entrenched itself with premium enterprise clients – deploying just 9.2 Lakh devices but commanding far higher retention. 

Adding to this, its new cross-border licence sharpens this edge, unlocking a new, lucrative revenue stream from export-focussed businesses. 

What’s Ahead: The market has primed the fintech for certain headwinds. At 68X EBITDA multiple, Pine Labs faces the harsh reality of clearing INR 900 Cr debt on its books and fixing its financials. So far, the fintech major has had just a single profitable quarter, aided by a tax credit of INR 9.6 Cr. In Q1 FY26, the company posted a net profit of INR 4.8 Cr against a loss of INR 27.9 Cr in the same quarter a year ago. 

Nevertheless, Pine Labs’ growth outlook remains strong, anchored in India’s growing digital payments ecosystem, improving margins and overseas presence. With a nod from RBI in hand and a massive debt pile to resolve, can the fintech veteran sustain its fragile profitability and become the undisputed king of B2B payments? Let’s find out… 

From The Editor’s Desk

👩🏻‍⚖️ Pronto Shifts Base To Bengaluru

• The quick service startup has shifted its headquarters to Bengaluru, completing a transition that began in October to tap tech talent in the startup hub. Customer support, however, will continue to operate out of Gurugram.
• Founded in 2024 and officially launched earlier this year, Pronto offers on-demand house help services in 10 minutes in key metros like Gurugram, Noida, Mumbai and Bengaluru.
• Pronto is cashing in on digitising the informal maid economy, offering verified, on-demand services. However, the emerging space still faces challenges of low margins, high onboarding costs, and regulatory scrutiny.

📈 HealthKart’s Profit Run Continues

• The nutrition-focussed ecommerce startup’s profits soared 3X YoY to INR 120 Cr in FY25, driven by a 30% YoY rise in operating revenue to INR 1,312.6 Cr, growing sales and an INR 31 Cr boost from a deferred tax credit.
• Founded in 2011, HealthKart sells nutrition supplements and vitamins, targeting fitness enthusiasts primarily through ecommerce platforms, its online marketplace (listing over 200 brands) and offline stores.
• HealthKart operates in India’s growing nutritional supplements market, which is projected to grow to over $550 Bn by 2033 on the back of increased health awareness and rising disposable incomes. 

📊 ACKO Cuts Losses In FY25

• ACKO shrank its FY25 net loss by 36.7% YoY to INR 424.4 Cr as operating revenue grew nearly 35% YoY to INR 2863.8 Cr.
• Despite narrowing losses, the insurer faces tighter regulatory pressure from IRDAI, which has rejected multiple requests for EoM relaxation and imposed penalties.
• Founded in 2016, ACKO sells automobile, health, life and travel insurance on its platform. Backed by names like Accel and Elevation Capital, the unicorn continues to grapple with rising competition, high expenses, and regulatory headwinds.

🤖 AI Startups To Watch Out For

• Inc42’s November edition of AI Startups To Watch highlights five early stage Indian AI startups — AiroClip, Redacto, Adya AI, QuickAds and Wyzard AI.
• These startups are reshaping workflows, boosting enterprise efficiency, and creating India-specific AI solutions across gaming, governance, finance, retail and security.
• This comes as global tech giants are doubling down on India’s AI future, with Google announcing a $15 Bn investment and Microsoft expanding data infrastructure across the country.

🚀 SIDBI Shoots For The Stars

• SIDBI Venture Capital has announced the first close of its Antariksh VC fund at INR 1,005 Cr, anchored by a landmark INR 1,000 Cr investment from IN-SPACe. Targeting a corpus of INR 1,600 Cr, the fund will back early and growth stage spacetech startups.
• Announced by finance minister Nirmala Sitharaman in the 2024 budget, the fund plans to invest in around 35 startups over five years, with ticket sizes ranging from INR 30–40 Cr, focussing on satellites, propulsion and ground stations.
• The creation of a dedicated VC fund signals a new era of capital availability for the Indian spacetech ecosystem, which is evolving rapidly and is projected to become a $77 Bn opportunity by 2030.

Inc42 Markets

Inc42 Startup Spotlight

Can Fery Rides Redefine Safe Mobility For Indian Women?

Safety concerns remain a major issue for women navigating urban transport, with conventional ride-hailing platforms falling short on safeguards and offering fewer opportunities for women drivers. But, women-only mobility platform Fery Rides is trying to change this narrative. 

Women Behind The Wheel: Founded in 2023, Fery Rides connects female commuters with trained and verified women drivers through an app that offers real-time tracking, SOS features, and WhatsApp-based support. All rides operate on electric vehicles, adding a sustainability layer to its safety-focussed model.

Safety Meets Livelihood: With over 65,000 rides completed and more than 250 women drivers onboarded, Fery combines secure mobility with income generation for its female drivers. It provides a structured pathway for women to become professional drivers, supported by technology and operational infrastructure.

A Growing Market: The startup operates in the nascent women-led ride-hailing segment, which is projected to become a $500 Mn opportunity by 2030 amid rising demand for safety-led mobility options. Backed by Indian Angel Network, can Fery Rides make ride-hailing safer for Indian women?

Infographic Of The Day

CarTrade has quietly built one of the biggest brands in India’s used car market, and it did so largely through M&As. Here’s a look at the auto marketplace’s acquisition playbook.