Pine Labs

Pine Labs, the popular POS solutions company that has major market share in India, has received court approval in Singapore to relocate its base to its largest market — India. According to reports, it has received the green light to merge its Singapore-based entity, Pine Labs Limited (PLS), with its Indian counterpart, Pine Labs Private Limited (PLI).

This relocation entails the transfer of all assets, liabilities, and ongoing legal proceedings from PLS to PLI. Shareholders in PLS will, once the transfer is over, become shareholders in PLI, ensuring continuity for investors. Following the finalization of the National Company Law Tribunal (NCLT) order and its registration, PLS will be dissolved, leading to a streamlined and centralized company structure for Pine Labs.

This development comes at a time when prominent firms are relocating their domiciles to India to capitalize on favorable economic conditions and a growing domestic market. The trend gained momentum recently when Groww, backed by Tiger Global, completed its domicile shift from the US to India. This follows last year’s similar move by PhonePe, another fintech decacorn, which transferred its operations from Singapore to India. Razorpay is also in the process of moving its parent entity from the US to India. For its part, the Indian government has been actively promoting the redomiciling of startups to India, a process known as ‘reverse flip’. This initiative aims to bring international market opportunities to Indian startups while benefiting from the domestic regulatory framework.

What would Pine Pabs’ relocation mean for both the firm and the Indian fintech landscape? Simply put, the shifting of its operations to India would enable Pine Labs to dedicate more resources and attention to catering to the specific needs and opportunities within the Indian market. This can, in turn, attract greater investment into the Indian fintech sector. Investors who were previously hesitant due to concerns about regulatory uncertainty in foreign domiciles may be more inclined to invest in companies headquartered in India. Furthermore, the return of established companies might attract and retain top fintech talent within the country.

While the Singapore court has given its nod, Pine Labs is now waiting for final approval from India’s National Company Law Tribunal (NCLT). The plea, first listed on March 1, 2024, has been adjourned until May 31, 2024. Once the NCLT grants approval, Pine Labs will complete the full transfer of its assets and properties to its Indian entity, allowing it to operate wholly under Indian jurisdiction.

Speaking of Pine Labs, the firm has established itself as a key player in the fintech sector, offering a range of products and services including point-of-sale terminals, gifting solutions, and credit facilities. Founded in 1998, Pine Labs is known to cater to businesses of all sizes, offering a comprehensive suite of solutions including cloud-connected point-of-sale (POS) terminals for accepting electronic payments, digital gifting options, and even working capital solutions. Today, it is backed by some of the most prestigious names in the investment world, including Peak XV Partners, Fidelity Investments, Invesco, Temasek, PayPal, and Alpha Wave Global. The company had previously filed for a US initial public offering (IPO) in 2022 with the aim of raising around $500 million. However, this plan was later scrapped.