Pine Labs is reportedly in talks to acquire API based infrastructure company, Setu. The acquisition will comprise of a cash and equity deal worth $70- $100 million. Through this deal Pine Labs will get access to Setu’s account aggregator consent framework and technology and will aid it in improving market time for its planned financial services launch.
The possible deal comes in the backdrop of Pine Labs seeking to diversify its offerings from just merchant payments.
The API-based infrastructure company, Setu, partners with licensed account aggregators and provides customisable screens for users to register, approve, reject and manage data consent requests. In addition, Setu owns its own sandbox which allows developers to build their own solutions on top of the technology stack. To date, Setu has raised a little over $18 million in equity funding. As per industry sources, earlier in January 2022, Pine Labs had filed for a ‘confidential’ initial public offering (IPO) worth $500 million with the US Securities and Exchange Commission, and was seeking a valuation between $6 billion to $7 billion. Further, in the same month the company also raised $20 million from State Bank of India.
