Pine Labs acquires Shopflo to boost online checkout

Pine Labs has acquired Shopflo, adding an online checkout platform used by more than 1,000 eCommerce brands.

The deal brings Shopflo into Pine Labs' wider payments business as the fintech group expands its online operations alongside its established offline merchant network.

Pine Labs said online payments revenue rose about 50% year on year in the third quarter of the 2026 financial year, with growth driven by categories including hospitality, diagnostics and fitness. Before the acquisition, it had been building tools for online merchants covering payment acceptance, optimisation and other transaction services.

Shopflo focuses on the stage between when a customer adds items to a basket and when they complete a purchase. Pine Labs said many merchants still lose customers at that point due to lengthy forms for returning users, coupon-related friction, payment failures, and weak incentives for prepaid transactions.

The acquisition moves Pine Labs beyond payment processing alone. It aims to combine payment infrastructure with the checkout experience in a single offering for merchants selling both online and offline.

Shopflo was founded by Priy Ranjan, along with Co-founders Ankit Bansal and Ishan Rakshit. Pine Labs described it as a checkout optimisation platform designed to help online brands improve conversion at the point of purchase.

Brands using Shopflo have recorded conversion gains of 15% to 20%, according to Pine Labs. The platform also serves more than 60 million consumers through the merchants it supports.

Online push

The transaction marks another step in Pine Labs' push into digital commerce. Long known for point-of-sale and merchant payment services, the group has been expanding its online offering as commerce shifts across channels and merchants look to reduce the number of providers they use.

India's online retail market has attracted rising investment in areas such as payment gateways, checkout software, fraud controls and merchant tools. Competition has focused not only on processing payments but also on reducing abandonment rates and improving purchase completion at the final stage of an order.

Pine Labs said this is where Shopflo fits into its existing operations. By linking checkout design more closely to transaction processing, it aims to address merchant losses incurred before payment is completed.

"Commerce today is no longer defined by channels - merchants need a single, intelligent platform that can power both their offline and online journeys. With the acquisition of Shopflo, we are taking a decisive step toward building a truly full-stack payments and commerce platform. This strengthens our ability to serve merchants end-to-end, from in-store payments to online checkout and beyond. That's how you build a merchant platform that matters," said B Amrish Rau, Chief Executive of Pine Labs.

Shopflo backing

Before the acquisition, Shopflo had raised USD $3.7 million from investors including Tiger Global Management, TQ Ventures and Better Capital. It offered software for identity verification, analytics, payments and shopping cart customisation.

These products were designed to help eCommerce businesses increase conversion rates and average order values. Shopflo also provided discount management tools, user interface features and integrations with other commerce systems.

The addition gives Pine Labs a more direct role in the customer checkout journey rather than limiting it to the underlying payment rails. That could matter for merchants using separate tools for storefronts, checkout, payment acceptance and post-purchase services.

Pine Labs operates in India and several international markets, including Malaysia, the Philippines, the United Arab Emirates, Singapore, Australia, the United States and parts of Africa. Alongside its payments business, it also runs issuing services such as prepaid instruments and gift cards.

For Shopflo, the transaction offers access to a larger merchant base. For Pine Labs, it adds another piece to its effort to serve merchants across in-store and online transactions through a broader set of software and payment products.

"We built Shopflo to solve one of the most critical challenges in eCommerce - improving conversion and customer experience at checkout. Joining forces with Pine Labs allows us to take our capabilities to a much larger merchant base and create a unified commerce ecosystem that delivers measurable growth," said Ranjan.