Forward of its plans to increase into the US, Pine Labs has acquired fintech infrastructure specialist Setu, in a money and fairness deal totalling upto round $70-75 Mn.
Put up acquisition, Setu will retain its identification and proceed to operate independently below the management of it’s present workforce. Entry to Setu’s API would operate as gateway for Pine Labs’ entry into embedded finance. The Tech Portal had earlier reported Pine Labs’ plans to amass Setu in April 2022.
Amrish Rau, CEO at Pine Labs, mentioned “Cost transactions have gotten increasingly embedded. Sooner or later, information and identification can even be delivered in a frictionless method. That is the place Setu has performed some great work. If we will present embedded finance and supply open API Infrastructure to our retailers, the mix between Setu and Plural will likely be vital.”
Based in 2018 by Nikhil Kumar and Sahil Kini, Setu is an API (Utility programing interface) service supplier that gives API for an umbrella-like integration of a number of Fintech companies like on-the-fly Credit score traces, Debit card insurances and so forth. to monetary establishments like banks, insurance coverage corporations, AMCs and so forth. Setu affords open APIs throughout 4 classes, specifically information, funds, investments and lending.
“I’m this acquisition as a completion between an internet fee stack and an embedded fintech stack. Each these coming collectively make it extraordinarily highly effective,” Rau added.
Pine Labs, whose chief product is Level-of-Scale (PoS) offline fee machines (the cumbersome units that fuel stations use for card funds), have been aggressively working in direction of growth and diversification. Final yr, the corporate launched it’s on-line funds product, Plural. Pine Labs additionally acquired Mumbai based mostly on-line funds startup Qfix Infocomm earlier this yr and Malaysian funds platform Fave final yr. The corporate made a major majority funding in SaaS enterprise Mosambee in April.