Pine Labs acquires Shopflo for ₹88cr to boost D2C offerings
What's the story
Leading fintech firm Pine Labs has announced the acquisition of Shopflo Technologies, a direct-to-consumer (D2C) checkout platform. The all-cash deal is valued at up to ₹88 crore. The acquisition will be completed within three months and is expected to strengthen Pine Labs's position in the D2C ecosystem by integrating payments infrastructure with checkout capabilities.
Strategic fit
Shopflo's expertise to enhance Pine Labs's capabilities
Founded in December 2021, Shopflo specializes in developing checkout infrastructure and e-commerce enablement tools. The company aims to improve conversion rates for online brands by providing checkout optimization tools, analytics, and e-commerce solutions. These capabilities will complement Pine Labs's existing payments infrastructure. "With the acquisition of Shopflo, we are taking a decisive step toward building a truly full-stack payments and commerce platform," said B Amrish Rau, CEO of Pine Labs.
Market influence
Impressive growth and adoption by online brands
Shopflo has already served over 1,000 online brands and facilitated transactions for more than 60 million consumers. Merchants using its platform have reported a 15-20% improvement in conversion rates. The company has also seen significant revenue growth, with FY25 revenue at ₹14.7 crore, up from ₹9.1 crore in FY24 and ₹0.63 crore in FY23.
Financial journey
Early investor backing and recognition
Founded by Priy Ranjan, Ankit Bansal, and Ishan Rakshit, Shopflo gained early attention in 2022 when Tiger Global made its first seed investment in India through the company. The startup has raised around $3.7 million from investors including Tiger Global, TQ Ventures, and Better Capital. Pine Labs's acquisition of Shopflo is a strategic move to offer an integrated platform for merchants across offline payments, online checkout, and customer engagement.
Profitability
Pine Labs reports strong profitability trends
Pine Labs has been EBITDA positive for the past five years, with adjusted EBITDA rising to ₹355 crore in FY25 from ₹155 crore in FY24. The company recently turned PAT positive, reporting a net profit of over ₹4 crore in Q1 FY26. CEO Amrish Rau said the profitability trend is expected to sustain despite continued investments in technology and product development.