Pine Labs, a leading fintech unicorn, has released its financial results for the fiscal year 2022-23 (FY23), revealing a substantial increase in operating revenue alongside a significant rise in consolidated net losses, primarily attributed to deferred tax expenses.
According to the filings with the Ministry of Corporate Affairs, Pine Labs’ consolidated net loss more than doubled to INR 56.2 Cr in FY23 from INR 22.6 Cr in the previous fiscal year. This increase was mainly driven by a notable difference in deferred tax expenses.
However, despite the increase in losses, Pine Labs experienced strong revenue growth in FY23. The company’s operating revenue surpassed the INR 1,000 Cr mark, reaching INR 1,280.5 Cr, marking a 37% increase from INR 932.3 Cr in FY22. The majority of Pine Labs’ revenue is generated from the sale of services, which amounted to INR 1,013.8 Cr in FY23, up from INR 733.8 Cr in the preceding year.
In addition to service sales, Pine Labs also earns revenue from the sale of its point-of-sale (PoS) devices. However, its total revenue from product sales experienced a slight decline of over 4% year-on-year (YoY), amounting to INR 33 Cr in FY23.
Pine Labs’ revenue sources are categorized into digital payments and issuing businesses. Under digital payments, the company earns revenue from various services such as electronic payment processing, aggregator services, Buy Now Pay Later (BNPL) services, and sales of hardware for digitization of fuel stations. In the issuing business, Pine Labs generates revenue from gift solutions and breakage revenue, among others.
Furthermore, Pine Labs’ total revenue, including interest income and others, surged by over 38% YoY to INR 1,327.5 Cr in FY23. Notably, the company’s revenue from India grew to INR 1,253.7 Cr, while its income from global markets increased by 51% YoY to INR 268.7 Cr in the same period.
Despite the rise in revenue, Pine Labs’ total expenses also increased by 35.8% to INR 1,402.2 Cr in FY23. The significant jump in expenses can be attributed to various factors, including a 35.4% increase in employee benefit expenses, which totaled INR 606.7 Cr in FY23.
Pine Labs, known for its robust funding history and backing from prominent investors such as Alpha Wave Ventures, MasterCard, Peak XV, and State Bank of India, recently introduced a new offering called Credit+. This platform aims to facilitate the quick rollout of credit card schemes for banks, fintech companies, and merchants.
As Pine Labs continues its growth trajectory and diversification of services, its financial performance will be closely watched, especially as it prepares for potential future developments such as an IPO.
