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Pine Labs acquires embedded finance startup Setu

Jun 24, 2022
Illustration of a supermarket basket with a bank inside.

Illustration: Sarah Grillo/Axios

Pine Labs, an Indian e-commerce and payments startup, has acquired embedded finance startup Setu in a cash-and-stock deal worth $70-$75 million, The Economic Times reports.

Why it matters: Pine Labs is expected to be the first Indian fintech to list in the U.S. but may delay plans to go public due to market conditions. In the meantime, its acquisition spree continues.

Between the lines: Pine Labs got its start as a point-of-sale payments processor for merchants but has gradually been expanding its product set through a series of acquisitions.

What it does: Setu offers open APIs across four categories: data, payments, investments, and lending. ​

  • With the deal, Pine Labs will enter the embedded finance market, which will further diversify its product offerings and potential customer base.

Flashback: The company raised $150 million at a valuation north of $5 billion from Alpha Wave Global in February, and added another $50 million in March.

  • Over the past year, it has also acquired online payments startup Qfix Infocomm and discovery platform Fave.
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