Pine Labs Limited, the Gurugram-based fintech company listed on BSE and NSE in November 2025, has acquired a 100% stake in Shopflo Technologies Private Limited, a Bengaluru-founded e-commerce checkout startup, for ₹88 crore, according to a regulatory filing with the stock exchanges in April 2026. The acquisition marks Pine Labs’ first major M&A move since its ₹3,900 crore IPO and directly bolsters its online payments vertical, which grew over 30% year-on-year in Q2 FY26, per the company’s investor presentation.
What Is Shopflo?
Founded in 2021 by Priy Ranjan (CEO), Ankit Bansal (CTO), and Ishan Rakshit, Shopflo is a SaaS platform that helps direct-to-consumer (D2C) brands and e-commerce merchants improve online checkout conversions and reduce abandoned carts, per Tracxn company data. The startup operates two core products: a checkout tool that stores shopper information for faster purchases and a recovery tool that re-engages abandoned cart users directly via WhatsApp, per Inc42. Shopflo had raised $2.6 million in a single seed round in May 2022 from Tiger Global Management, TQ Ventures, and Better Capital, a notable round, as it marked Tiger Global’s first-ever seed-stage investment in an Indian startup, per Inc42 reporting at the time. As of March 31, 2025, Shopflo posted annual revenue of ₹15.5 crore, per Tracxn financial data. The company employed 63 people as of August 2025.
Why Pine Labs Bought Shopflo: The Strategic Logic
Pine Labs’ acquisition of Shopflo is a direct move to strengthen its online payments infrastructure at a time when its offline POS business, while still dominant, faces margin compression. In Q3 FY26 (quarter ending December 2025), Pine Labs reported overall operating revenue of ₹744 crore, up 23% year-on-year, and a net profit of ₹42 crore compared to a loss of ₹56.7 crore in the same quarter last year, per Inc42. However, the real growth engine was its Value-Added Services (VAS) segment, which expanded 41% during the quarter and crossed ₹76,000 crore in GTV, per Inc42 analysis.
Pine Labs has been publicly repositioning itself as a full-stack fintech, moving beyond its POS hardware origins into issuing, acquiring, cross-border payments, affordability, and merchant software. Shopflo’s checkout optimisation technology fits directly into this “Pine Labs 2.0” narrative. Per Inc42, revenue growth is already outpacing GTV growth, which signals that Pine Labs earns more per transaction through software-layered services than through core payment processing alone. Adding Shopflo’s checkout stack accelerates this shift by giving Pine Labs a product that sits at the most critical moment in any online transaction, the point of purchase.
Pine Labs processed $51 billion in gross transaction value in Q3 FY26 alone, and its cumulative processed GTV has crossed $200 billion since inception, per Inc42. Against that scale, Shopflo’s annual revenue of ₹15.5 crore is small, but its technology, its D2C merchant relationships, and its 63-person product team are what Pine Labs is paying ₹88 crore for. This values Shopflo at approximately 5.7x its FY25 revenue, a reasonable multiple for an acqui-hire with strategic product fit.
Pine Labs: From POS Machine Maker to Full-Stack Fintech
Pine Labs was incorporated in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay as a petroleum retail automation company before pivoting to merchant payments, per Inc42. It was listed on BSE and NSE on November 14, 2025, at a 9.5% premium over its IPO price of ₹221 per share, per Chittorgarh data, and ended its first trading day nearly 14% above the issue price. The IPO raised ₹3,900 crore, comprising a fresh issue of ₹2,080 crore and an offer for sale of ₹1,820 crore.
As of June 30, 2025, Pine Labs served 9,88,304 merchants, 716 consumer brands, and 177 financial institutions globally, per its IPO prospectus. In FY25, the company processed ₹11.42 trillion in transactions across 568 crore individual transactions. Its revenue grew 28% year-on-year to ₹2,274 crore in FY25, while losses narrowed from ₹265 crore in FY23 to ₹145 crore in FY25, per INDmoney IPO analysis. The company turned a quarterly net profit of ₹4.8 crore in Q1 FY26 before posting a ₹42 crore profit in Q3 FY26, per Inc42.
Under Executive Chairman and MD Amrish Rau, Pine Labs secured all three key payment licences from the Reserve Bank of India: Payment Aggregator, Payment Gateway, and Cross-Border Payments on November 12, 2025, just one day after its IPO closed, making it the first Indian fintech to hold all three, per Inc42. The company has also integrated OpenAI’s technology into its commerce workflows, per a February 2026 announcement cited by Wikipedia.
Its acquisition track record is extensive: Pine Labs has completed 8 acquisitions in total, with its most active year being 2022 with 4 deals, per Tracxn. Previous acquisitions include Qwikcilver (gifting platform, $110 million, 2019), Fave (Southeast Asian loyalty platform, $45 million, 2021), Setu, Mosambee, Credit+, and QFix (all in 2022-23). Shopflo, at ₹88 crore ($10.5 million approximately), is among the smaller deals by value but strategically among the most targeted, directly addressing the online checkout gap in Pine Labs’ product portfolio.
What This Means for India’s D2C Ecommerce Market
Shopflo competes with GoKwik, Cashfree, PayU, and Instamojo in India’s e-commerce payment enablement space, per Inc42. The D2C segment has become a fiercely contested battleground as India’s e-commerce market was projected to reach $200 billion by 2026, growing at a CAGR of 7.8%, and with online shoppers projected to reach 350 million by FY25, per Inc42 market data cited in Shopflo’s original funding announcement.
The acquisition gives Pine Labs a dedicated D2C checkout product for the first time, allowing it to compete more directly with pure-play checkout optimisers while leveraging its existing relationships with 177 financial institutions and 9.88 lakh merchants. For Pine Labs’ merchant network, which includes clients like Amazon Pay, LG Electronics, Flipkart, HDFC Bank, Axis Bank, and ICICI Bank, per its IPO prospectus, Shopflo’s checkout technology can now be layered onto existing accounts as an upsell.
The deal also comes at a time of leadership change within Pine Labs: Navin Chandani, President and Chief Business Officer of its Issuing segment, resigned effective April 6, 2026, to pursue external opportunities, per Entrackr. His departure after three years leading the Qwikcilver issuing business adds further context to the company’s strategic reshuffle as it integrates Shopflo and deepens its online payments push.
Also Read: FPIs Pull ₹1.75 Lakh Crore From India in 2026; Fed Decision Due April 29
FAQs
What did Pine Labs acquire Shopflo for?
Pine Labs acquired 100% of Shopflo Technologies Private Limited for ₹88 crore, according to a BSE regulatory filing in April 2026. Shopflo is an e-commerce checkout optimisation startup founded in 2021.
Who are Shopflo’s founders?
Shopflo was founded in 2021 by Priy Ranjan (CEO), Ankit Bansal (CTO), and Ishan Rakshit. The company raised $2.6 million in seed funding from Tiger Global, TQ Ventures, and Better Capital in May 2022, Tiger Global’s first-ever seed-stage investment in India.
Why did Pine Labs buy Shopflo?
Pine Labs is repositioning itself from a POS hardware company to a full-stack fintech platform. Shopflo’s online checkout technology directly fills a product gap as Pine Labs’ value-added services segment, including online payments, grew 41% in Q3 FY26, per Inc42.
How big is Pine Labs after its IPO?
Pine Labs listed on BSE and NSE in November 2025 at ₹221 per share and raised ₹3,900 crore. As of Q3 FY26, it reported revenue of ₹744 crore for the quarter, up 23% year-on-year, and a net profit of ₹42 crore, per Inc42. It serves over 9.88 lakh merchants and 177 financial institutions globally.
Is Shopflo profitable?
Shopflo reported annual revenue of ₹15.5 crore as of March 31, 2025, per Tracxn. No standalone profitability data has been publicly disclosed. At ₹88 crore, Pine Labs paid approximately 5.7x Shopflo’s FY25 revenue.
What is Pine Labs’ current share price?
As of April 21, 2026, Pine Labs shares traded at ₹195.62 on NSE, against a 52-week range of ₹151.12 to ₹284, per PL Capital data. The stock is down approximately 32% year-to-date from its November 2025 listing price, per Groww.
