Pine Labs Limited made its first acquisition since its stock market listing when its board approved the purchase of 100% stake in Shopflo Technologies Private Limited on April 25, 2026, in an all-cash transaction valued at up to ₹88 crore approximately $9.3 million. The deal, disclosed through a regulatory filing, will be completed in one or more tranches within three months and requires no regulatory approvals. The transaction is not classified as a related party transaction.
Shopflo, a direct-to-consumer checkout platform with its headquarters in Bengaluru, was founded in December 2021 and has quietly established a significant place in India’s rapidly expanding D2C ecosystem. When Tiger Global made its first seed-stage investment in India through Shopflo in 2022, the startup received early reputation. This is an uncommon distinction for a business that is less than a year old. Shopflo has raised about $3.7 million from investors, including Better Capital, TQ Ventures, and Tiger Global.
“Pine Labs has acquired D2C checkout platform Shopflo in an Rs 88 Cr cash deal. The company was founded in December 2021 by Priy Ranjan, Ankit Bansal and Ishan Rakshit and was backed by Tiger Global, TQ Ventures and Better Capital.”~Entrackr
What Shopflo Does And Why The Checkout Problem Matters:
Cart abandonment during the checkout step is the main issue Shopflo was designed to address, which costs Indian e-commerce companies millions of rupees in lost income each month. A significant amount of consumers who add items to their online carts never finish the transaction, despite tremendous advancements in payment infrastructure during the previous ten years. Long paperwork, unclear discount application procedures, unsuccessful payments, and overall friction that causes hesitancy at the last stage are all well-known causes.
This is immediately addressed by Shopflo’s platform. One-click repeat purchasing via stored customer profiles, customizable cart designs, dynamic discount application, and WhatsApp-based recovery workflows for abandoned carts are all part of its toolkit. This feature is especially important for Indian direct-to-consumer (D2C) brands where WhatsApp serves as the main channel for customer communication. According to the company, its technology has helped businesses increase checkout conversion rates by 15% to 20%, which is a significant improvement for any company in a competitive online market.
At the time of acquisition, Shopflo handled transactions for almost 60 million clients and collaborated with more than 1,000 e-commerce firms. Well-known D2C businesses with repute in India’s consumer internet market, like Dot & Key, Nestasia, and The Sleep Company, are among its clientele. In terms of finances, Shopflo’s revenue development has been rapid, rising from barely ₹0.63 crore in FY23 to ₹9.15 crore in FY24 and then to ₹14.73 crore in FY25. This trajectory indicates an increase of about 61% in the most recent year. As a result of ongoing investments in product development and expansion, the company reported a net loss of ₹3 crore in FY25.
“Pine Labs acquires D2C SaaS startup Shopflo for Rs 88 Cr. Founded in 2021 by Priy Ranjan, Ankit Bansal and Ishan Rakshit, Shopflo gained attention when Tiger Global made its first ever seed investment in India through the startup.”~YourStory
How The Deal Fits Pine Labs’ Full-Stack Commerce Strategy:
For Pine Labs, the Shopflo acquisition fills a specific gap that has existed in its product architecture. The company has long been dominant in offline, point-of-sale payments — its POS terminals are present across large format retail, hospitality, healthcare diagnostics, and fitness categories. Its Plural platform handles online payment processing. But between those two capabilities lay an underserved layer: the checkout experience itself, particularly for D2C brands that operate primarily through their own websites.
By bringing Shopflo’s technology into the Pine Labs stack, the company can now offer merchants a continuous journey from product discovery to payment confirmation — online and offline — within a single, integrated platform. Pine Labs’ CEO B. Amrish Rau put it plainly: “Commerce today is no longer defined by channels. Merchants need a single, intelligent platform that can power both their offline and online journeys. With the acquisition of Shopflo, we are taking a decisive step toward building a truly full-stack payments and commerce platform.”
Pine Labs’ own online payments business has been growing rapidly. In Q3 FY26, online payments revenue rose around 50% year-on-year to ₹744 crore from ₹601 crore a year earlier. The company posted a net profit of ₹42 crore in the quarter, compared to a loss of ₹57 crore in Q3 FY25 — a sharp turnaround that reflects improving unit economics. The company’s Q4 FY26 results are awaited, and the Shopflo announcement places the acquisition in the context of Pine Labs actively building out its product portfolio ahead of that disclosure.
“Fintech platform Pine Labs acquired checkout optimisation platform Shopflo for Rs 88 crore as the Amrish Rau-led company looks to deepen engagement with direct-to-consumer merchants. Shopflo had over 1,000 e-commerce online brands processing transactions for 60 million customers.”~Business Standard
What Happens To Shopflo Post-Acquisition:
Structurally, Shopflo will continue to operate as an independent entity after the deal closes rather than being immediately absorbed into Pine Labs’ existing business units. The company plans to expand its team to approximately 65 employees. The three co-founders: Priy Ranjan, Ankit Bansal, and Ishan Rakshit will step down from their executive roles and transition into advisory positions, allowing Pine Labs’ operational teams to take over the day-to-day management of the business.
Priy Ranjan, Co-founder and CEO of Shopflo, described the acquisition as a natural progression: “We built Shopflo to solve one of the most critical challenges in ecommerce – improving conversion and customer experience at checkout. Joining forces with Pine Labs allows us to take our capabilities to a much larger merchant base and create a unified commerce ecosystem that delivers measurable growth.”
The integration is expected to focus primarily on product and merchant synergies rather than a structural merger in the near term, a sensible approach given that Shopflo’s value lies in its specialised checkout technology and its established client relationships within the D2C segment.
Pine Labs operates in India as well as a number of other countries, including Southeast Asia, the Middle East, Australia, and the US. The company has indicated that the Shopflo acquisition will help it expand into international e-commerce solutions outside of its home market. As the competitive environment changes toward end-to-end platforms capable of connecting offline and digital commerce under one roof, the deal places Pine Labs more directly against integrated payment and commerce giants like Razorpay, Paytm, and PhonePe.
