Pine Labs said it has acquired Southeast Asian startup Fave in a deal valued at $45 million as the Indian firm looks to strengthen its consumer-focused offerings in the domestic and international markets.
Fave helps an offline merchant connect and retain customers by using gift cards and vouchers. The startup allows merchants to accept digital payments by having a customer scan a QR code. Once the payment is made, the customer automatically receives a cashback / loyalty point through the Fave app that can only be redeemed at that specific business during future transactions.
“Customers love us because they get safe money, cashback and rewards for being on the platform. And merchants love us because they get a lot of new and repeat customers,” explained Joel Neoh, co-founder and chief executive of Fave, which like Pine Labs, is backed by Sequoia Capital India. Five-year-old Fave, which started as a fitness subscription service, raised over $32 million prior to being acquired.
This offering has especially proven useful to merchants in the pandemic as they scramble for ways to drive sales from existing customers, said Amrish Rau, chief executive of Pine Labs, in an interview. “Consumers, too, were looking for ways of cost-savings or ways to optimize their purchases.”
Pine Labs which offers businesses payments terminals, invoicing tools, and working capital, and acquired a gift cards solution provider Qwikcilver in 2019 made its first investment in Fave last year.