Pine Labs signs agreement to acquire Qwikcilver for consideration of USD 110 mln

Pine Labs, a merchant platform, has signed a definitive agreement to acquire the Bangalore- based gift card solutions provider Qwikcilver for a consideration of USD 110 million. The transaction is funded from Pine Labs' cash reserves and additional funding from existing investors, the company said in a statement Tuesday.

Qwikcilver is a gift card service provider, managing an annualised gross transaction value of USD 1.5 billion across India, the Middle East and Southeast Asia. "Gifts, 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," Pine Labs chief executive Vicky Bindra said.

The acquisition will help both the companies augment their domestic and international market reach. "With Pine Labs, we have the potential and ability to significantly scale the gift card category and drive consumer adoption with novel products and solutions. We are very excited about taking the next step in our journey," Qwikcilver co-founder and chief executive Kumar Sudarsan said.

Kumar will join the Pine Labs team after the completion of the transaction. Pine Labs provides financing and last-mile retail transaction technology to around one lakh merchants in India and Malaysia. Its investors include Sequoia India, PayPal, Temasek, Actis Capital, Altimeter Capital, Madison India Capital and Sofina.