The transaction has been funded from the company’s cash reserves and additional funding from existing investors. Actis is committing a further USD 30 million to the company increasing its total investment in Pine Labs to USD 90 million.

Pine Labs processes annualized payments of USD 20 billion. This acquisition will bring together the strengths of Pine Labs’ merchant-focused and Qwikcilver’s brand-focused software-as-a-service (SaaS) technology platforms, and augment their Indian and international market reach. The combined gift solutions business will be the largest in India with a customer base of over 250 brands and retailers, and 1500 enterprise customers.

Qwikcilver, which was founded in 2006, is a full-stack gift card service provider, powering nine out of every 10 gift cards in the country and managing an annualized gross transaction value of USD 1.5 billion across India, Middle East and South East Asia.

Actis has been a prolific investor in growth market payment businesses and was an early investor in Stone, the Brazilian payments company that had a record listing on the Nasdaq last year.

Asanka Rodrigo, Partner and Head of South Asia at Actis commented: “We see Qwikcilver as a natural, complimentary acquisition for Pine Labs, offering a further market leading product to merchants, integrated with their billing systems and Pine Labs’ payment network. Both are market leaders in their respective segments in India and have a similar expansion strategy outside India”.”