Peak XV-backed Pine Labs has reported an operating revenue of Rs 1,588 crore in FY23, up from Rs 1,017 crore in FY22. The merchant commerce and payments platform also managed to reduce its losses to Rs 227 crore in FY23, from Rs 259 crore a year ago, according to the consolidated financial statements filed by the group company in Singapore. Growth in revenue was primarily driven by its three core business segments — digital payments, issuing and consumer applications.
Under the digital payments segment, Pine Labs operates platforms like Pinelabs, Qfix, Mosambee, Benow and Setu, enabling merchants to accept in-store or online digital payments. The revenue from this segment, covering subscription and transaction-based fees, along with the sale of PoS devices, increased by 75.1% to Rs 1,077 crore in FY23, up from Rs 615 crore in FY22. The issuing segment, focused on prepaid cards, saw a 32% growth to Rs 445 crore in FY23, up from Rs 337 crore in FY22.
On the expense side, employee benefit costs constituted 45% of the overall expenditure, reaching Rs 895 crore in FY23, a 32% increase from FY22. Additional costs, such as transaction and data centre expenses, legal, advertising, depreciation, impairments and other overheads led to a 44.49% rise in overall expenditure to Rs 1,981 crore in FY23.
The company’s ROCE stood at -4%, while its Ebitda margin was at 8% in FY23. On a unit level, Pine Labs spent Rs 1.25 to earn a rupee in FY23.