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From Singapore to India, Pine Labs' Strategic Relocation Approved

Pine Labs Merger, Court Approves Move from Singapore to India

21 May 2024

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Kunal Tyagi

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  • Pine Labs' relocation to India, approved by a Singapore court, aims to merge its Singapore and Indian entities, significantly reducing overhead costs and improving resource allocation by avoiding duplication.

  • This move aligns with a broader trend of fintech firms like PhonePe and Groww returning to India, driven by rapid technology adoption among local consumers and expanding market opportunities.

  • Backed by investors such as Temasek and Peak XV Partners, Pine Labs' shift to India underscores the growing recognition of India's burgeoning digital economy and positions the company for enhanced growth and innovation.

In a strategic move to streamline its operations and reduce costs, fintech firm Pine Labs has received approval from a Singapore court to relocate its base to India. This decision, highlighted in a recent regulatory filing seen by TechCrunch, will merge Pine Labs' Singapore and Indian entities, significantly enhancing operational efficiency. The amalgamation is expected to lead to a reduction in overhead costs, including administrative and statutory compliances, thereby allowing the company to better allocate and utilize its resources by avoiding duplication of efforts between the two countries.


Pine Labs operates as a comprehensive merchant commerce platform, offering point-of-sale (POS) services that enable merchants to accept both plastic card and QR-based payments. Beyond POS services, the company provides a variety of products including buy now pay later (BNPL) options, invoice management, gifting solutions, and e-commerce enablement. The firm, supported by prominent investors like Temasek and Peak XV Partners, raised $150 million from Alpha Wave in 2022, achieving a valuation of approximately $5 billion. Although Pine Labs initially planned an overseas IPO, this was postponed due to volatile market conditions.


The decision by Pine Labs to relocate aligns with a broader trend among fintech firms such as PhonePe and Groww, which have also moved their domiciles back to India. This shift is driven by the rapid adoption of technology by local consumers and the expanding market opportunities within India. For instance, Walmart-owned PhonePe moved from Singapore to India in 2022, incurring Rs 8,000 crore in taxes during the transition. Similarly, Groww's founder and CEO, Lalit Keshre, recently announced the company's completed domicile transition from the US to India as of March 2024, with Razorpay also in the process of relocating from the US to India.


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The relocation of Pine Labs to India is expected to bolster its operational efficiency and resource allocation, leveraging the growth in the Indian fintech market. This strategic shift underscores the growing recognition of the vast opportunities within India’s burgeoning digital economy. The move also reflects a broader industry trend where major players such as Meesho, Zepto, Flipkart, and Udaan are evaluating similar relocations to capitalize on the robust growth prospects in India.


Despite the significant implications of this move, Pine Labs has yet to make an official announcement regarding its relocation. The court's approval marks the formal beginning of the merger process between Pine Labs' Singapore and India entities. This development, as indicated in filings from data platform TheKredible, will help the company reduce overheads, including administrative and statutory compliances, thereby improving overall efficiency and resource allocation.


Overall, Pine Labs' shift to India is a testament to the increasing attractiveness of the Indian market for fintech firms. With supportive investors and a robust market environment, the company is well-positioned to capitalize on the rapid technological adoption and expanding opportunities within the region. This move not only streamlines Pine Labs' operations but also sets the stage for enhanced growth and innovation in India's dynamic fintech landscape.


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