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Pine Labs receives court approval in Singapore to move base to India

Retail trading startup Pine Labs has received approval from a Singapore court to merge its local entity with its Indian unit and transfer all its assets and properties, effectively allowing the company to shift its operations to India.

Pine Labs disclosed the court order in a recent regulatory filing seen by TechCrunch.

Pine Labs offers merchants a range of products and services, such as cloud-connected vending and working capital. It is backed by Peak XV, Fidelity, Invesco, Temasek, PayPal and Alpha Wave and is valued at over $5 billion.

It is one of the few Indian startups that have shifted their base to India in recent times. Meesho, Zepto, Flipkart, Razorpay and Udaan are also evaluating a similar move. Fintech startups PhonePe and Groww have already shifted their foreign holdings to India.

Pine Labs declined to comment.

An investor in Indian startups said companies are shifting their bases to India as startups with valuations below $20 billion are highly unlikely to get meaningful coverage from analysts in developed markets, which will lead to limited demand from institutional investors.

“But in India, everything is trading at a premium because there is so much demand for technology companies,” the investor said, requesting anonymity to speak candidly. Entrepreneur Gokul Rajaram made a similar comment about software companies in India.

The transfer is expected to help Pine Labs “achieve business synergies and greater economies of scale,” the startup explained in its lawsuit. It will also help the company ‘achieve cost savings’ and ‘simplify its shareholder structure’.