Digital payments company Pine Labs has reportedly secured $125m in funding from PayPal and Temasek.
The transaction will see the two firms pick up minority stakes in the India-based POS developer, according to various reports in the media.
PayPal aims to help Pine Labs develop its offering through its product expertise, while Temasek will use its network across Asia to help the company expand in the region, the articles state.
Pine Labs offers point-of-sale payments in India, replacing the use of a card with a cloud-based platform that is designed to reduce costs and drive revenue for retailers. It currently processes 450m transactions worth more than $15bn annually, and handles around 15 per cent of India’s cashless transactions, according to the company.
The company offers a range of payment solutions including POS machines, digital wallets, digital payments, QR code transactions and reward cards, among others. Business loans are also accessible through the POS system, with repayment coming from an agreed percentage of daily card sales.
This deal comes one month after Pine Labs raised an $82m equity round led by Actis and participation from Altimeter Capital. Equity from the round is labelled for accelerating its network in India and expanding to new regions.
Paypal recently completed the immense $2.2bn deal to acquire digital payments platform iZettle. The ultimate goal for the deal is to bolster the in-store presence of PayPal, as well as gain access to the omnichannel retail ecosystem. With iZettle, Paypal boosted its international footprint by moving into Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden.
There has been a lot of activity in India’s FinTech environment over the past month, with the most notable deal being US retail group Walmart making a $16bn deal for a 77 per cent stake in Flipkart.
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