Pine Labs, an IPO bound financial and digital payment service provider is currently in talks in order to buy Setu, an API based infrastructure company. According to the sources, Pine Labs is seeking the acquisition in cash and a deal for $70-$100 million equity in the company.
If the deal gets done, Pine Labs will a way in to Setuâ€™s consent framework of Account Aggregator as well as technology. This will help to improve the market for companyâ€™s planned launch of financial services. The piled-up technology stack of Setu terminates the need of multiple combinations for a single feature that the financial service providers are making.
Pine Labs is seeking the acquisition in cash and a deal for $70-$100 million equity in the company.
This acquisition comes during Pine Labâ€™s look-out to expand its services from just merchant payments. Fintech, which is a merchant focused company, initiated towards offerings for customers last year when it acquired Fave, a Singapore based start-up for loyalty payments. Pine Labs also launched Plural, a payment gateway to help modern D2C (Direct-to-customer) brands to undertake the new way of payments, that is digital and credit linked payments. According to the company, the board has been informed of the offer given by Pine Labs, but the thoroughness is still underway. Presently, Pine Labs have the individuality for about a month until the deal gets settled.
The company was looking to merge its accession of Qwikcilver, a gift card provider and Fave on the companyâ€™s consumer platform last year, in order to provide buy-now-pay-later and loyalty-based solutions for its customer. The technology stack of Setu is expected to help in refining and repairing the financial data infrastructure of Pine Labs at a point of time when it is actively exploring the digital lending space of India.
Setu, is a provider of API infrastructure, that allows financial institutions and banks to initiate their financial services on the company platform. Setu was found in the year 2018, that allows other companies to overcome the previous loan assessments like screen scrapings, SMS readings and uploading of files and also permits the service providers to collect data logically and in a smooth way with consent of the consumer.
Pine Lab have been exploring ways to transform into a new-markets for the business and launching new components.
Setu teams up with aggregators who are licensed and allows its users to approve, reject, register and manage the data of consent requests by providing them with customisable screens. By some of the great acquisitions, Pine Lab have been exploring ways to transform into a new-markets for the business and launching new components.
Till present day, the amount Setu has been able to raise in equity funding is slightly over $18 million. The competitor of Pine Labs, M2P Fintech has recently announced its raise of $56 million in equity funding, that was led by Insight Partners, a private equity company based out of New York.
A confidential Initial Public Offering (IPO) was filed by Pine Labs wit the US securities and Exchange Commission, for which it was looking out a valuation between $6 – $7 billion. Around the same time, the company raised $20 million from State Bank of India which is Indiaâ€™s largest lender. Last month, Falcon was likely to invest in Pine Labs with an amount of $100 million.