Merchant payment platform Pine Labs said it had bought Singapore-based loyalty cashback startup Fave for $45 million, in a bid to expand its presence in the consumer payment category in India and Southeast Asian markets.
As a result, Fave will now bring its consumer loyalty offering to India, via the launch of a separate app for these consumers, LiveMint reported.
Fave’s investors will receive an all-cash payout, while founders and key Fave employees will receive both cash and Pine Labs shares.
Pine Labs had earlier entered into a strategic partnership with Fave to strengthen its presence in India.
As a result of the partnership, Pine Labs was given access to Fave's fintech platform which offers QR code payments to restaurants and retailers in Southeast Asia.
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Fave's QR code was set to be integrated with Pine Labs's terminals to enable a seamless payments experience for consumers.
However, for Fave's launch in India, it will be offering a unified payments interface (UPI)-based payments for Indian consumers, pending approval from the National Payments Corporation of India (NPCI), the report said.
Speaking to LiveMint, B Amrish, the Chief Executive Officer (CEO) said that more offline merchants want to create engagement programmes with their existing customers to boost loyalty and store walk-ins.
"Through Fave, consumers can be apprised of these benefits under one ecosystem, assisted by Pine Labs’ deep partnership with these merchants," he said.
This acquisition would help bolster growth for both firms in Asia, unlocking massive consumer opportunities across domains of retail, food & beverage, fashion and FMCG, the report said.