Fintech unicorn Pine labs a Noida based company is in highlight because it is reported that it is going to acquire Setu. Setu is a Bangalore based API (application programming interface)infrastructure company. The deal for acquiring Setu is underway and it could cost Pine labs as much as $70 million reported by citing sources.
Setu was founded in 2018 by Sahil Kini and Nikhil Kumar, It offers open APIs across 4 categories like bills, credits, savings and payments.
It also allows companies to break through old modes of loans such as screen scrapings, SMS readings and file uploads. All this allows service providers to seamlessly collect data through consumer consent. To date, the company has raised a funding of around $18.5 million.
With this acquisition, Pine labs will be able to get access to Setu’s account aggregator consent framework and technology. This will help the company improve its market time for the planned financial services launch. With Setu’s technology stack, one can eliminate the need for financial service providers to multiply integrations for one feature.
This deal is made at the time when Pine labs is looking to diversify its offerings from merchant payments. Last year FinTech took first steps towards consumer offerings that were merchant focused. It also launched a payment gateway to help new-age brands which are D2C (direct to consumer) accept digital and credit-linked payments.
Setu’s technology has helped Pine labs to refine and overhaul its financial data infrastructure at a time when it is actively looking at India’s digital lending space.