{
  "id": 9789006,
  "title": "How Pine Labs Shifted Gears: From PoS Devices To An AI-Powered Fintech Stack",
  "url": "https://urgent.news/2026/09/25/how-pine-labs-shifted-gears-from-pos-devices-to-an-ai-powered-fintech",
  "topic": "business",
  "section": "Business",
  "published": "2026-09-25T14:43:08.000Z",
  "source": {
    "name": "Inc42",
    "slug": "inc42",
    "url": "https://inc42.com/features/how-pine-labs-shifted-gears-from-pos-devices-to-an-ai-powered-fintech-stack/"
  },
  "original_language": "en",
  "account": "Pine Labs, originally founded in 1998, began its journey by assisting petrol pumps with payment processing and loyalty programs. Over three decades, the company has transformed into a publicly-traded fintech firm that extends beyond basic payments to encompass online checkout, consumer financing, gift cards, card issuing, and banking infrastructure. By the first quarter of fiscal year 2027 (FY27), Pine Labs was catering to over 11.5 lakh merchants, brands, and financial institutions across India, Southeast Asia, and the Middle East.\n\nStrategic acquisitions played a significant role in expanding Pine Labs' fintech offerings. These acquisitions included Qwikcilver for gift cards, Fave for consumer rewards, Mosambee for merchant acceptance, Qfix and Shopflo for online payments and checkout, Setu for fintech infrastructure, Credit+ for issuing capabilities, and Saluto for enterprise rewards capabilities. Despite raising nearly $1.6 billion before going public, Pine Labs has struggled to convert this expansion into sustained profitability.\n\nThe journey to the public markets was fraught with challenges. Initially, Pine Labs delayed a planned IPO in the United States, aiming for $500 million in 2022, amid a weak market climate. Ultimately, the company opted for an Indian listing, merging its Singapore holding company with its Indian entity in June 2025. It reported its first full-year consolidated profit of ₹112.5 crore in FY26, following a loss of ₹145.5 crore in the previous year. Operating revenue grew by 19% to ₹2,710.6 crore, while adjusted EBITDA increased by 57% to ₹559 crore.\n\nPine Labs' adjusted EBITDA margin improved from approximately 16% to 21%, while its contribution margin declined from 76% to 75%. Factors contributing to this profit improvement included lower depreciation and amortization expenses, higher other income, and a reduction in exceptional charges. Noteworthy profitable segments for Pine Labs include the Qwikcilver gift card and prepaid platform, which generate high-margin income. However, the Q1 FY27 results underscore the ongoing challenges Pine Labs faces. Despite a 20% year-on-year revenue increase to ₹736.9 crore and a more than quadrupling of net profit to ₹19.6 crore, adjusted EBITDA margin contracted to 17.1% from 19.6%. The company cited business mix shifts and additional investments as key drivers behind this margin pressure.",
  "summary": "In 1998, the newly incorporated Pine Labs was helping petrol pumps accept payments and manage loyalty programmes. Nearly three decades…",
  "key_points": [],
  "editors_take": null,
  "illustration": null,
  "coverage": {
    "outlets": 1,
    "also_reported_by": []
  },
  "ai_generated": true,
  "disclaimer": "Summaries, key points and the editor’s take are written by software from other outlets’ reporting and may contain errors — always check the linked original."
}