Post the buyout, the fin-tech start-up, which has 90-100 employees will retain its brand identity, business and team
The acquisition of the Bengaluru-based API fin-tech start-up Setu was announced on Thursday by Pine Labs, a merchant commerce platform in a deal valued at $70 to 75 million. The deal will entail a mix of equity and cash.
Commenting on the acquisition, B Amrish Rau, CEO of Pine Labs, said: “Setu will make an incredible addition to the Pine Labs platform. Embedded financial services and open banking are going to be the way forward and the embedded finance market value is expected to exceed USD 138 billion by 2026 as APIs are intensifying the competitive fin-tech landscape.”
The deal is valued at $70 to 75 million, company officials said at a virtual briefing.
The fin-tech start-up has seen strong demand for its products – their APIs are used across diverse industry verticals including start-ups, retail enterprises, banks, insurance, and lending companies.
From Aadhaar eSign to BBPS bill payment, payment collection integration via WhatsApp, FASTag payment collection amongst others, the fin-tech start-up’s existing and emerging use cases cut across multiple digital ecosystems.
Application programming interface or API acts as a link between computers or between computer programmes. In other words, it is a kind of software interface, offering a service to other software elements.
The fin-tech start-up is the third acquisition announced by Pine Labs this year.
“Setu helps their customers, merchants, and brands build beautiful experiences, so consumers can engage with payments and financial services on their terms. We are in the golden phase of digitisation in India, and Setu is a pioneer in supporting innovation on the India stack – their work on UPI and in the account aggregator space is moving the industry forward,” Rau said.
Post the buyout, the fin-tech start-up, which has 90-100 employees will retain its brand identity, business and team.
“We are excited with this investment coming from Pine Labs. Pine Labs’ network of merchants and issuers coupled with our API integration prowess will help achieve great results in personal finance management, monitoring loans to predict default rates, credit underwriting, and several other areas,” Sahil Kini, Co-founder and CEO at Setu said.
The fin-tech start-up works with account aggregator partners which are non-banking financial companies operating under the ‘NBFC-AA’ license from the Reserve Bank of India. They enable the consolidation of all financial data of users at a single location and allows users to access services quickly.
Also read: A career in the technology industry has a vast scope
Do Follow: CIO News LinkedIn Account | CIO News Facebook | CIO News Youtube | CIO News Twitter
CIO News, a proprietary of Mercadeo, produces award-winning content and resources for IT leaders across any industry through print articles and recorded video interviews on topics in the technology sector such as Digital Transformation, Artificial Intelligence (AI), Machine Learning (ML), Cloud, Robotics, Cyber-security, Data, Analytics, SOC, SASE, among other technology topics