Pine Labs Pvt. Ltd. said it will acquire Bengaluru-based digital gift card firm Qwikcilver Solutions Pvt. Ltd. for about $110 million as it looks to expand its operations in India and abroad.
The point-of-sale payments solutions company said the deal will be funded by the company's cash reserves and existing investors.
Pine Labs, which claims to process payments of $20 billion annually, said it will integrate Pine Labs' merchant-focused platform with Qwikcilver's software-as-a-service technology platform.
Kumar Sudarsan, co-founder and chief executive officer of Qwikcilver will join the Pine Labs leadership team after the acquisition, it said, adding that Qwikcilver will continue to operate as a separate team.
“According to market estimates, gift, as a category, is growing at a high double-digit rate annually. Qwikcilver's technology and market expertise will help us scale up this business and we are delighted to welcome it into Pine Labs,” Vicky Bindra, chief executive officer at Pine Labs said in a statement.
Founded in 2016, Qwikcilver is a full-stack gift card services provider which offers solutions to retail players and corporate entities. The company, according to its website, manages an annualised gross transaction value of $1.5 billion across India, Middle East and Southeast Asia.
Pine Labs too had started its own gift solutions business—Pine Perks—four years ago. The company said it is used by organisations across banking, insurance, manufacturing, pharmaceutical, fast-moving consumer goods and telecom industries.
Post the deal, Pine Labs said the combined gift solutions will be the largest in India with a customer base of over 250 brands and retailers and 1,500 enterprise customers.
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