SUMMARY
Amrish Rau-led Pine Labs’ revenue from operations jumped 1.4X to INR 1,017 Cr
Total expenses jumped 31% to INR 1,276 Cr from INR 974 Cr in FY21
The unicorn’s net loss rose 4.5% to INR 259.1 Cr from INR 247.8 Cr in FY21
Amrish Rau-led fintech giant Pine Labs’ revenue from operations jumped 1.4X in the financial year 2021-22 (FY22) to INR 1,017 Cr from INR 726.1 Cr in FY21 on rise in its digital payments and gifting solutions businesses.
The startup earned a majority of its revenue from its core business of facilitating digital payments through its Point of Sale (PoS) terminals. The startup, through its hardware and software offerings, provides continuous access to electronic payments and transaction processing services.
Pine Labs’ revenue from digital payments jumped 38.6% to INR 614.8 Cr in FY22 from INR 443.3 Cr in FY21, as per the filings of its parent company in Singapore.
The startup earns revenue from merchants based on the number and value of transactions processed, along with fixed monthly charges.
Apart from digital payments, the startup also earns revenue through gifting solutions. It provides gift cards or stored value card solutions to various retail and corporate clients. In FY22, Pine Labs earned INR 336.9 Cr through gifting solutions, a 59% jump from INR 212 Cr in FY21.
Meanwhile, total expenses climbed 31% to INR 1,276 Cr from INR 974 Cr in FY21. Employee benefit expenses contributed more than half of the startup’s total expenses. Pine Labs spent INR 681.5 Cr on employee salaries, ESOPs, PF contributions, and other employee welfare benefits in FY22, a 41% increase from INR 482.8 Cr in FY21.
Meanwhile, transaction costs surged 142.3% to INR 120.9 Cr from INR 49.9 Cr in FY21. Legal professional expenses stood at INR 26.3 Cr in FY22, an increase of 87.8% from INR 14 Cr in FY21.
Overall, net loss rose 4.5% to INR 259.1 Cr from INR 247.8 Cr in FY21.
Founded in 1998 by Lokvir Kapoor, Pine Labs offers point-of-sale payments in India, Malaysia, and the UAE. The startup has raised over a billion dollars in funding till date and is backed by marquee investors like Alpha Wave Ventures, MasterCard, Sequoia Capital, and State Bank of India. It entered the prestigious unicorn club in 2020 by raising funding from MasterCard.
Earlier this week, Pine Labs announced the acquisition of Bengaluru-based Saluto Wellness Private Limited’s proprietary enterprise platform to boost its issuing business under the Qwikcilver brand. Last year, it also acquired Bengaluru-based fintech infrastructure startup Setu in a $70 Mn-$75 Mn deal to strengthen its offerings.
PineLabs competes with the likes of Razorpay and PayU.
