Fintech major Pine Labs has acquired a 100 per cent stake in checkout optimisation start-up Shopflo Technologies for up to ₹88 crore in cash, as it looks to strengthen its online payments and unified commerce offerings, according to a regulatory filing and company statement.
The acquisition, approved by Pine Labs’ board on April 25, is expected to be completed within three month, and will see the company buy out existing shareholders of Shopflo. Shopflo, incorporated in December 2021, reported revenue of Rs 14.735 crore for the year ended March 2025, reflecting rapid growth from ₹0.633 crore in FY23.
The move comes as Pine Labs sharpens its focus on building a full-stack commerce platform that integrates payments infrastructure with front-end checkout and customer experience tools. The company said the acquisition will allow it to offer direct-to-consumer (D2C) merchants an end-to-end stack spanning in-store payments, online checkout, conversion optimisation, and consumer engagement.
“Commerce today is no longer defined by channels — merchants need a single, intelligent platform that can power both their offline and online journeys,” said B Amrish Rau, CEO of Pine Labs. “With the acquisition of Shopflo, we are taking a decisive step toward building a truly full-stack payments and commerce platform.”
The acquisition comes at a time when Pine Labs’ online payments business is seeing strong traction. The company reported around 50 per cent year-on-year growth in online payments revenue in the December quarter, expanding into newer segments such as hospitality, diagnostics and fitness.
Industry executives say that while payments infrastructure in India has matured significantly, merchants continue to face challenges in converting users at checkout. Issues such as long forms, payment failures, and friction in applying discounts often result in drop-offs between cart and transaction completion.
Shopflo aims to address these gaps through its checkout optimisation platform, which is used by over 1,000 online brands and serves more than 60 million consumers. Merchants using the platform have reported 15–20 per cent improvement in conversion rates, the company said.
“We built Shopflo to solve one of the most critical challenges in e-commerce — improving conversion and customer experience at checkout,” said Priy Ranjan, co-founder and CEO of Shopflo. “Joining forces with Pine Labs allows us to take our capabilities to a much larger merchant base.”
The acquisition underscores a broader shift in the digital commerce ecosystem, where payments companies are increasingly moving up the stack to offer integrated merchant solutions. Pine Labs said the combined platform will bring together payments infrastructure, checkout intelligence, and data insights into a single system aimed at improving merchant profitability and customer experience.
With Shopflo, Pine Labs is positioning itself to compete more directly with full-stack commerce platforms by addressing not just payments acceptance, but also conversion and retention — areas that are becoming critical as online customer acquisition costs rise.
The company said the integration of Shopflo’s capabilities will enable merchants to optimise the entire purchase journey, from payment method selection to final transaction confirmation, marking its next phase of growth in India and other emerging markets.