20th May 2024 – Merchant commerce startup Pine Labs has received approval from a Singapore court to merge its local entity with its Indian unit, allowing the firm to transfer all assets and properties to India. The move, disclosed in a regulatory filing, signifies Pine Labs’ intent to shift its operations to India.
Pine Labs offers various products and services to merchants, including cloud-connected point-of-sale machines and working capital solutions. With backing from prominent investors like Peak XV, Fidelity, and Temasek, the company is valued at over $5 billion.
The decision to relocate its domicile to India aligns with a trend seen among several Indian startups, including Meesho, Flipkart, and Razorpay. Fintech firms like PhonePe and Groww have already completed similar moves.
The rationale behind this shift lies in the greater demand for tech companies in the Indian market compared to developed markets, where startups with valuations below $20 billion may receive limited coverage from analysts and institutional investors.
Pine Labs expects the merger to lead to business synergies, economies of scale, cost savings, and simplification of its shareholding structure.
Overall, this strategic move positions Pine Labs to leverage the robust demand for tech companies in India and streamline its operations for enhanced efficiency and growth.
Source:Link
