Fintech major Pine Labs is acquiring ecommerce-focused SaaS startup Shopflo in an all-cash deal worth ₹88 Cr (about $9.3 Mn). The acquisition is expected to be completed in the next three months, the company said in an exchange filing. The online checkout optimisation platform will allow Pine Labs to increase its presence in the ecommerce and digital merchant payments space at a time when the latter’s online payments revenue is seeing strong growth.
Pine Labs’ from online payments revenue grew around 50% YoY in the third quarter of FY25. “With the acquisition of Shopflo, we are taking a decisive step toward building a truly full-stack payments and commerce platform. This strengthens our ability to serve merchants end-to-end, from in-store payments to online checkout and beyond,” said Pine Labs CEO B Amrish Rau.
Pine Labs will now offer an end-to-end payments and checkout platform for D2C merchants spanning in-store payments and merchant solutions, online checkout, conversion optimisation and growth tools, along with enhanced consumer engagement and retention, and multi-channel data-based consumer insights. Founded in 2021 by Ankit Bansal, Priy Ranjan and Ishan Rakshit, Shopflo helps ecommerce and D2C companies improve their checkout conversions and reduce fraud COD orders. It offers tools for identity verification, analytics, payments, and shopping cart customisation.
It provides features such as discount management, user interface elements, and integrations with other ecommerce systems. Shopflo has tied up with over 1,000 brands and claims to have driven a 15-20% increase in conversion rates for merchants. It counts D2C brands like Dot & Key, Nestasia, and The Sleep Company among its clients.
The startup raised $2.6 Mn in its seed funding round led by Tiger Global and TQ Ventures in 2022, marking the former’s maiden seed investment in India. Overall, Shopflo has raised $3.7 Mn to date. On the financial front, its revenue jumped almost 61% to ₹14.7 Cr in FY25 from ₹9.2 Cr in the previous fiscal year, Pine Labs said in an exchange filing.
The development comes at a time when Pine Labs has also witnessed robust growth in its financial performance over the past few quarters. In the most recent reported quarter, it posted a profit of ₹42.4 Cr in Q3, a 7X jump from ₹6 Cr in the previous quarter. Operating revenue recorded a 24% YoY and 15% QoQ growth to ₹744.3 Cr during the period.
The company attributed the jump in its revenue to growth in its issuing, affordability and online payments businesses. Pine Labs had earlier acquired Setu in 2022 to strengthen its bill payments and online payments operations. However, this is the company’s first acquisition since listing on the bourses in November 2025.
It is yet to announce its fourth quarter results. Shares of Pine Labs ended yesterday’s trading session 0.53% lower at ₹195.65 on the BSE.