Pine Labs acquires gifting startup Qwikcilver for $110 Million

Key Highlights

Qwikcilver is acquired by Pine Labs for $110 Million.

Pine Labs and Qwikcilver merger have a customer base of more than 250 brands and retailers, and 1500 enterprise customers.

Pine Labs has gained 25% growth in revenue to Rs 302.97 crore in FY18.

India’s one of the largest point of sale payment company Pine Labs has acquired Qwikcilver a Bengaluru based gifting startup. The agreement between the two took for $110 Million in a bid to own a full-stack gift card processing offering. The fund was transferred to Qwikcilver partially by cash and some by funds received from investors by Pine Labs.

According to Vicky Bindra, chief executive, Pine Labs, “We were said that investors of Qwikcilver were planning to perish and their services and products matched our offerings in gifting sector so we decided to acquire it.”

According to a media report last month the acquisition will assist Qwikcilver’s existing investors such as Sistema Asia Fund, Amazon, Accel India, and Helion Venture Partners to make exit with a five to six times return. This deal is going to become a helping hand for Pine Labs’ merchant-focused and Qwikcilver’s brand-focused software-as-a-service (SaaS) technology platforms to expand their reach to India and overseas.

This deal has made a combined gift solution business a giant with a customer base of more than 250 brands and retailers, and 1500 enterprise customers. 

Kumar Sudarshan, Qwikcilver cofounder, and CEO is going to join Pine Labs and handle its gifting business. Pratap TP and other founders and chief marketing officers will continue to work in their existing roles. This team will function separately in Noida and Bangalore. 

Qwikcilver came into action in 2006. It is a full-stack gift card service provider for corporate entities, consumers and retail. The company has a partnership with big retailers including Shoppers Stop, Titan, PVR, Future Group, Amazon, Myntra, Pantaloons, MakeMyTrip, Myntra and Landmark. The company manages the annualized gross transaction value of $1.5 billion across India, South East, and Middle East Asia. It has raised approximately $20 Million from Helion Venture Partners, Amazon, Sistema Asia Fund and Accel India. 

Pine Labs came into existence in 1998. It is a gifting solution business and has wide portfolio of users including various organizations in telecom industries, insurance, banking, pharmaceutical, FMCG and manufacturing. It is used by 1,00,000 merchants in 3700 cities and towns across India and Malaysia. It is backed by PayPal, Sofina, Temasek and Sequoia India. Noida based Pine Labs has till now raised $125 Million. 

According to a press report Pine Labs has annualized payments of $20 billion while Qwikcilver’s annual transaction value is around$1.5 billion across India, West Asia, and South East Asia.

Pine Labs is very soon going to enter into Unicorn club. It has reported a 55.25% growth in revenue to Rs 302.97 crore in FY18. It has shown decent growth, the losses were also dropped by 33.88% to Rs 2.52 crore in the same fiscal.

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