Pine Labs is a merchant commerce and payments platform. It has reported a massive increase in its operating revenue, which reached around Rs. 1588 crore in FY23. This marks a massive rise from around Rs. 1017 crore in FY22 and represents a 56.15% growth.
Peak XV Partners backs Pine Labs; It has been able to double its operating scale in the previous fiscal years and reported around Rs. 726 crore in revenue in fiscal year 2021.
Pine Labs’ reduction in losses
Regardless of all the challenges, the company managed to reduce its losses to around Rs. 227 crore in FY23. This is down from Rs. 259 crore in FY22. This 12.3% decrease in its losses is a great improvement in the financial health of Pine Labs. The consolidated financial statements that were filed in Singapore showed a positive trend.
The business segments of Pine Labs are leading to growth.
The revenue growth was primarily due to Pine Labs’ three important business segments: issuing, consumer applications, and digital payments.
The segment of digital payments, which also involves platforms such as Pinelabs, Mosambee, Setu, Qfix, etc., saw a 75.1% increase in revenue to around Rs. 1,077 crore in FY23.
The issuing segment focused mainly on prepaid cards, and the revenue grew by 32% to Rs. 445 crore. Also, the consumer applications segment helped with revenue of around Rs. 66 crore during FY23.
Pine Labs: Revenue due to geographic distribution
A massive portion of the company’s revenue comes from the country itself. It accounts for 91% of the total company’s operating income. Singapore contributed about 4% of the revenue in FY23. Also, Pine Labs recorded a non-operating income of around Rs. 166 crore. This also includes interest on deposits and gains in investments along with mutual funds.
Pine Labs’ expenditure and complete financial health
Employee benefit costs represent around 45% of the company’s total expenditure. It reaches around Rs. 895 crore in FY23. Also, its expenditure increased by 44.49% to Rs. 1981 crore because of costs like legal fees, depreciation, transactions, data center expenses, etc.
Despite the increases in Pine Labs’ expenses, its return on capital employed remained at -4% and the EBITDA margin remained at 8%. However, on a unit level, the company spent around Rs. 1.25 to earn a rupee in the fiscal year 2023.
Pine Labs’ prospects
Pine Labs is at the forefront of the digital payments revolution across the country. It is offering innovative payment solutions for omnichannel requirements. Pine Labs also launched Mini, a convenient QR and card acceptance device. It is targeting small as well as medium enterprises to increase digital payment adoption.
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