Fidelity, BlackRock Lead Fintech Startup’s $600 Million Funding

Fidelity, BlackRock Lead Fintech Startup’s $600 Million Funding

(Bloomberg) -- Pine Labs Pvt, a payments platform for merchants in India and Southeast Asia, closed a $600 million fundraising round with some of the world’s largest investors including Fidelity Management & Research Co. and BlackRock Inc. as it targets a public offering within 18 months.The Singapore-based startup, which offers solutions for in-store and online payments as well as prepaid, loyalty and “pay later” programs, is valued at $3 billion, Chief Executive Officer Amrish Rau said. Investors participating in the round included a fund advised by Neuberger Berman Group LLC and India’s IIFL Finance Ltd. and Kotak Funds.

Banks and merchants pay monthly fees for using Pine Labs’ software as a service, with the startup also receiving micro-fees on every transaction. Payment services are gaining popularity in Asia as smartphones become more widespread, benefiting providers such as Pine Labs.

“It’s a product from India that’s succeeded in Malaysia and Singapore and is entering Indonesia and Thailand,” Rau said in an interview via video call. “We’ve got a good, Ebitda-positive story as we plan our IPO in the next 18 months.”