Pine Labs provides merchant payments and fintech infrastructure through its payment terminals and digital solutions.
Explore how Pine Labs founders Rajul Garg, Tarun Upadhyay and Lokvir Kapoor built the company from petroleum retail automation into a leading merchant payments and fintech platform in India.
Written by TFN Research Desk | covering startups, technology, venture capital, and business strategy
Quick Facts
| Founders | Rajul Garg, Tarun Upadhyay, Lokvir Kapoor |
| Education | Lokvir Kapoor – BTech (Mechanical Engineering), IIT Kanpur; MBA, IIM Bangalore |
| Prior Ventures | Lokvir Kapoor – Schlumberger; Rajul Garg – later co-founded GlobalLogic |
| Role | Executive Chairman and Co-Founder, Pine Labs |
| Founded | 1998 |
| Sector | Merchant Payments |
Introduction
Pine Labs has one of the longest histories in Indian fintech, predating almost every payments startup operating today. Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, the company spent years quietly building merchant technology before payments even became a buzzword in India. (StartupTalky) Nearly three decades later, that patience paid off: Pine Labs went public in November 2025, becoming one of the year’s most closely watched Indian fintech listings. (TechCrunch)
The Pine Labs Story
Interestingly, Pine Labs didn’t start out in payments at all. The founders initially focused on petroleum retail automation, building loyalty and card-based systems for oil companies. (OrangeOwl) However, as card penetration grew across Indian retail in the early 2000s, the founders spotted a bigger opportunity and launched their first point-of-sale device in 2003. (OrangeOwl)
From there, Pine Labs steadily expanded into mainstream merchant payments, eventually adding gift cards, buy-now-pay-later options, and working capital tools alongside its core POS devices. (OrangeOwl) Along the way, the company also grew through acquisitions, including its 2020 purchase of Qwikcilver for roughly $110 million, which extended its footprint in Southeast Asia. (FundTQ)
By 2022, Pine Labs had scaled into a unicorn valued at over $5 billion, backed by marquee names including PayPal and Mastercard. (TechCrunch) Today, the company is led by CEO B. Amrish Rau, while co-founder Lokvir Kapoor continues as Executive Chairman. (Wikipedia)
Business Model
Pine Labs earns primarily through its merchant payments infrastructure and value-added services:
| Revenue Stream | How It Works |
|---|---|
| Device sales and leasing | Revenue from POS terminals sold or leased to merchants |
| Payment processing fees | Commissions on transactions processed through its platform |
| Value-added services | Gift cards, loyalty programs, EMI, and working capital solutions |
| Interest income | Returns on fixed deposits and current investments |
(Sourced from StartupTalky)
Funding and IPO History
| Round/Event | Year | Amount | Key Investors |
|---|---|---|---|
| Growth funding | 2009 onward | Multiple rounds | Peak XV Partners (Sequoia India) |
| Venture round | May 2021 | $285 million | Existing and new investors |
| Late-stage rounds | 2022 | Undisclosed | Actis, Temasek, PayPal, Mastercard |
| IPO | Nov 2025 | ₹3,900 crore (~$440 million) | Public listing on NSE/BSE |
(Sourced from Entrackr and TechCrunch)
Overall, Pine Labs has raised over $1.3 billion across its lifetime, and its November 2025 IPO valued the company at roughly $2.9 billion, a step down from its 2022 private valuation of over $5 billion. (TechCrunch) Even so, the stock jumped 14% on its debut day, closing well above its issue price. (TechCrunch)
Revenue and Growth
| Metric | FY24 | FY25 |
|---|---|---|
| Revenue | ₹1,769 crore | ₹2,274 crore (up 28.5%) |
| Net Loss | Higher base | ₹145 crore (down 57%) |
(Sourced from Entrackr)
Notably, Pine Labs turned profitable in the June 2026 quarter, posting a small profit alongside revenue of roughly ₹616 crore, signalling an important shift after years of losses. (MarketScreener)
Pine Labs vs Competitors
Pine Labs competes directly with Paytm and Walmart-owned PhonePe in merchant payments, along with global players like Stripe and Razorpay in broader fintech infrastructure. (Tracxn) Unlike some rivals, Pine Labs has leaned heavily on hardware, loyalty, and BNPL as differentiators rather than competing purely on transaction pricing.
Key Takeaways
- Rajul Garg, Tarun Upadhyay, and Lokvir Kapoor founded Pine Labs in 1998, originally in petroleum retail automation.
- The company pivoted to point-of-sale payments in 2003 and later expanded into gift cards, BNPL, and working capital.
- Pine Labs went public in November 2025 at a $2.9 billion valuation, down from over $5 billion in 2022.
- FY25 revenue grew 28.5% to ₹2,274 crore, while losses fell 57% year-on-year.
- The company turned profitable in the June 2026 quarter, marking a key inflection point.
FAQs
Who founded Pine Labs?
Rajul Garg, Tarun Upadhyay, and Lokvir Kapoor founded Pine Labs in 1998.
Is Pine Labs a public company?
Yes, it listed on the NSE and BSE in November 2025 following a ₹3,900 crore IPO.
How much funding has Pine Labs raised?
Over $1.3 billion across its lifetime before going public.
Who are Pine Labs’ competitors?
Paytm, PhonePe, Razorpay, and Stripe in India’s merchant payments space.
© The Founder Nation | Written by TFN Research Desk
