Two fintech giants. Two growth playbooks. One digital economy.
In the heart of India’s $1Tn+ digital commerce revolution, two companies are redefining how businesses transact, bank, and grow: Pine Labs and Razorpay. While one built its empire through POS terminals across retail counters, the other scaled through APIs powering the internet economy.
As India moves beyond basic payment acceptance, the battle is no longer about just enabling transactions; it’s about owning the full-stack merchant relationship. From embedded lending and payroll to loyalty and checkout experiences, Pine Labs and Razorpay are building parallel universes in fintech, each with its own strategy, strengths, and ambitions.
This isn’t just a tech rivalry. It’s a fundamental clash between offline-first scale and digital-native agility, and the winner could define the future of how India’s businesses operate. Let’s break it down.
Founding Story & Vision: Built in Different Eras, Scaling in One
While both Pine Labs and Razorpay are shaping India’s fintech landscape, they couldn’t be more different in origin, philosophy, and evolution. One was born in the age of plastic cards and physical retail. The other emerged from the API economy, built for the cloud, mobile, and startup-first India.
Let’s unpack how these journeys began:
Company Snapshots
| Aspect | Pine Labs | Razorpay |
| Founded | 1998 (Legacy Retail Era) | 2013 (Digital India Wave) |
| Founders | Lokvir Kapoor (Founder), Amrish Rau (CEO) | Harshil Mathur & Shashank Kumar (IIT Roorkee) |
| HQ | Noida, India | Bengaluru, India |
| Initial Focus | Smart card & loyalty systems | Online payment gateway for startups |
Pine Labs: The Retail Fintech Architect
Pine Labs was founded at a time when cash registers still ruled retail counters. What started as a smart card solution soon evolved into India’s POS infrastructure powerhouse. Over the years, it layered on EMI financing, gift card ecosystems (via QwikCilver), and now consumer engagement tools through its acquisition of Fave.
Today, Pine Labs powers millions of physical merchants across electronics, fashion, jewellery, and tier-2 retail, delivering a holistic in-store commerce stack.
Razorpay: The API-Native Disruptor
In 2013, Harshil Mathur and Shashank Kumar saw how broken online payments were for Indian startups. So they built Razorpay, a developer-first payments gateway that was fast, clean, and easy to integrate. Backed by Y Combinator, Razorpay became the Stripe of India, only it didn’t stop at payments.
Over the past decade, it launched RazorpayX (neobanking), Razorpay Capital (credit), Payroll, and Magic Checkout, transforming into an end-to-end financial OS for digital businesses.
From startups to SaaS unicorns, Razorpay is the go-to backend for banking, payouts, and collections.
Core Business Models: Where They Make Their Money
While both Pine Labs and Razorpay operate in the same fintech universe, their revenue engines run on different fuels. One monetizes the in-store experience, the other owns the digital transaction flow.
Quick Comparison
| Parameter | Pine Labs | Razorpay |
| Core Focus | POS-led retail fintech | Online-first, full-stack payments & banking |
| Revenue Levers | MDR share, POS rentals, EMIs, gift cards | Transaction fees, RazorpayX (banking), lending, SaaS |
| Key Advantage | Deep offline integrations with merchants | Seamless onboarding & developer-friendly infrastructure |
Pine Labs: Monetizing Every Swipe
Pine Labs dominates offline checkout with revenue from MDR cuts, POS terminal rentals, gift cards (via QwikCilver), and in-store EMI. It thrives in sectors like jewellery, electronics, and retail, where embedded finance meets foot traffic.
Razorpay: The Financial OS for the Internet
Razorpay monetizes through gateway fees, neobanking (RazorpayX), lending (Capital), and premium SaaS. It powers India’s digital-first economy, from D2C brands to SaaS and startups.
Bottom Line:
Pine Labs rules physical POS; Razorpay leads in virtual payments. Both convert merchant trust into recurring revenue, via different rails.
Product Playbook: What’s in Their Toolkit?
Both Pine Labs and Razorpay are building full-stack fintech ecosystems—but for very different use cases. One dominates the physical checkout. The other power digital flows from payment to payroll.
At a Glance: Product Capability Comparison
| Category | Pine Labs | Razorpay |
| POS Payments | ✅ Android smart terminals (via Ezetap) | ❌ Not a POS provider |
| EMI / BNPL | ✅ Strong play with banks & brands | ⚠️ Limited; mainly B2B working capital |
| Gift Cards & Loyalty | ✅ Qwikcilver + Fave integration | ❌ No native offering |
| Online Gateway | ✅ Plural for large merchants | ✅ Razorpay Gateway for startups & scale-ups |
| Business Banking | ⚠️ Light footprint | ✅ RazorpayX: accounts, payroll, expense mgmt. |
| Lending | ✅ Merchant & EMI-based financing | ✅ Razorpay Capital: BNPL, small biz credit |
| Developer Ecosystem | ⚠️ Minimal API stack | ✅ Rich sandbox, API docs, and dev community support |
Pine Labs: Built for the Counter
Smart terminals, EMI, and loyalty power its offline dominance. Plural enables online payments, but in-store remains core. Deep credit integrations make Pine Labs a retail ally.
Razorpay: Built for the Dashboard
One login handles payments, banking, payroll, and more. Its API-first model empowers startups and SMBs to scale fast with RazorpayX at the core.
Bottom Line:
Pine Labs enhances in-store experiences. Razorpay simplifies digital finance under one seamless platform.
Tech Stack & Innovation DNA: Hardware Meets Cloud vs Cloud-Native Core
While both players are fintech pioneers, their tech foundations reflect their origin stories. Pine Labs is engineered for India’s high-traffic retail floors, while Razorpay is designed for internet-scale growth.
Tech Trait Comparison
| Tech Trait | Pine Labs | Razorpay |
| Stack Focus | Hybrid: Hardware + cloud orchestration | Fully cloud-native, API-first architecture |
| Offline Reliability | ✅ Built for offline-first use cases | ⚠️ Newer to POS via Ezetap acquisition |
| AI & Risk Tools | ⚠️ Basic risk & fraud tools | ✅ Advanced AI stack via TERA (risk engine) & Thirdwatch (fraud detection) |
| Scalability | ✅ 850K+ POS terminals across India | ✅ 5M+ merchants, 200M+ end customers across the digital stack |
Pine Labs: Built for Bharat Retail
Reliable in low-connectivity zones, Pine Labs’ smart terminals work both online and offline, perfect for kiranas and malls. It excels in hardware-software synergy where uptime is critical.
Razorpay: Engineered for the Cloud
With an API-first, AI-secured, and multi-tenant stack, Razorpay is built for scale, speed, and seamless integration, tailored for startups and digital-first businesses.
Bottom Line:
Pine Labs is rugged and retail-ready. Razorpay is cloud-native and scalable. Different foundations, same mission: scaling India’s fintech future.
Merchant Base & GTM Motion: Enterprise Playbook vs Startup Flywheel
Pine Labs and Razorpay don’t just serve different customers, they reach them differently. One sells through banks and field teams. The other goes viral through APIs, documentation, and word of mouth.
At a Glance: Merchant & GTM Comparison
| Attribute | Pine Labs | Razorpay |
| Merchant Type | Midsize to large offline retailers | Startups, D2C brands, freelancers, and SMBs |
| GTM Strategy | Field sales, bank tie-ups, enterprise-led | Self-serve onboarding, content, developer evangelism |
| Client Scale | 100K+ merchant locations | 5M+ registered businesses |
Pine Labs: Trusted by Retail Giants
Serves high-ticket merchants like Croma, Reliance, and Big Bazaar. Strong ties with banks/NBFCs enable seamless EMI and credit options.
Razorpay: Fintech for the Masses
Self-serve onboarding, plug-and-play tools, and instant activation power Razorpay’s reach across startups, D2C brands, and freelancers.
Bottom Line:
Pine Labs goes deep with enterprise retail. Razorpay scales widely across India’s digital economy. It’s depth vs breadth, both excelling in their lanes.
Financial Snapshot (FY2024)
Pine Labs is in IPO mode, cutting burn, cleaning books.
Razorpay has flipped profitable, rare among unicorns, and is gunning for a 2026 IPO.
| Metric | Pine Labs | Razorpay |
| Revenue (₹ Cr) | 1383.7 | 2501.43 |
| Net Profit / Loss (₹ Cr) | -187.17 | 33.53 |
| 3-Yr CAGR | 26% | 44% |
| Total Raised (₹ Cr) | 2430 | 1150 |
| Valuation (₹ Cr) | 15400 | 4050 |
Key Financial Insights: Pine Labs vs Razorpay
- Razorpay outpaces Pine Labs in growth and profitability, with a 3-year CAGR of 44% and ₹33.5 Cr in net profit.
- Despite lower funding (₹1,150 Cr), Razorpay generates ~2× the revenue of Pine Labs.
- Pine Labs has a higher valuation (₹15,400 Cr vs ₹4,050 Cr), likely driven by its established offline merchant base and global expansion.
- Pine Labs remains loss-making (-₹187 Cr), suggesting ongoing investment in hardware, credit, and international bets.
Conclusion: Razorpay is leaner, faster-growing, and already profitable. Pine Labs plays the long game with deeper offline roots and larger funding reserves.
Note: On April 24, 2025, Razor Pay Inc. and Razorpay Software Limited underwent a scheme of amalgamation.
Note: On June 19, 2025, Pine Labs Limited( Singapore) and Pine Labs Limited(India) underwent a scheme of amalgamation.
Credit & Lending Stack: Checkout Credit vs Embedded Capital
Credit is no longer just a product, it’s a merchant moat. Pine Labs and Razorpay both offer lending, but their strategies reflect who they serve and how they monetize the flow of money.
Credit Type Comparison
| Credit Type | Pine Labs | Razorpay |
| Consumer BNPL | ✅ Embedded at POS in electronics, jewellery, lifestyle | ❌ Not a focus; no direct-to-consumer BNPL |
| Merchant Lending | ✅ Via Pine Labs Capital (offline MSME financing) | ✅ Via Razorpay Capital (B2B working capital loans) |
| Credit Cards | ✅ Offers issuance tools like Credit+ | ✅ Offers co-branded RazorpayX credit cards |
Pine Labs: Credit at the Counter
With deep EMI and BNPL integrations, Pine Labs turns checkout into a credit gateway, partnering with banks/NBFCs and offering branded lending via Credit+.
Razorpay: Embedded Lending for Digital SMBs
Razorpay Capital provides working capital and credit lines based on real-time transaction data, ideal for startups, freelancers, and online sellers.
Bottom Line:
Pine Labs powers visible, instant credit at the counter.
Razorpay delivers seamless, data-driven credit behind the scenes.
One drives conversions; the other fuels operations.
Global Expansion: The Southeast Asia Sprint
Both Pine Labs and Razorpay know that winning India isn’t enough. The next frontier? Southeast Asia and beyond. Here’s how their international journeys stack up:
Pine Labs: The First Mover
- Footprint: Actively present in UAE, Malaysia, and Singapore
- Strategic Acquisitions: Acquired QwikCilver (gift cards) and Fave (consumer payments platform) to gain instant reach across SEA
- IPO Prep: Merged its Singapore holding entity into the Indian arm to streamline structure ahead of a potential listing
Playbook: Pine Labs is building a hybrid retail-fintech stack across SEA by acquiring market-ready pieces and localizing quickly.
Razorpay: Fast Follower with Focus
- Entry Point: Entered Malaysia through the acquisition of Curlec, a recurring payments player
- Next Stop: Planning expansion into Singapore, with a focus on replicating its API-first SaaS model
- Reverse Flip: Re-domiciling to India in 2024–2025 after previously moving offshore, a compliance-first shift aligning with RBI expectations
Playbook: Razorpay is cautious but calculated, eyeing regional expansion only after regulatory de-risking at home.
Verdict:
Pine Labs has a head start in global merchant deployment and consumer integrations.
Razorpay is closing in, post-regulatory cleanup, with a sharper product-led GTM strategy.
Bottom Line: It’s not just about who went first; it’s about who scales best across cultures, compliance, and commerce.
Final Word: Who’s Winning Where?
The Pine Labs vs Razorpay race isn’t about one winner, it’s about different victories in different arenas. Here’s how the turf breaks down:
Offline Merchant Stack → Pine Labs
With millions of POS terminals deployed across retail India, Pine Labs owns the counter.
Digital SMB Onboarding → Razorpay
Startups and D2C brands swear by Razorpay’s seamless integration and API-first onboarding.
Developer Ecosystem → Razorpay
From clean docs to modular APIs, Razorpay wins the tech love.
In-Store Credit & EMI → Pine Labs
No one does checkout financing better at the physical point of sale.
Business Banking UX → Razorpay
RazorpayX is redefining how SMBs manage payouts, payroll, and working capital.
Profitability & Operating Efficiency → Razorpay
Lean, capital-efficient, and already in the green.
Loyalty & Gift Cards → Pine Labs
With QwikCilver under its belt, Pine Labs leads the brand engagement game.
Bottom Line?
This isn’t a winner-takes-all scenario. Pine Labs dominates the physical rails. Razorpay powers the digital rails. In a hybrid economy like India’s, both are indispensable.
Conclusion: Two Models, One Mission
Pine Labs and Razorpay aren’t merely rivals, they’re building parallel engines of India’s fintech infrastructure. Backed by PrivateCircle data, Pine Labs has anchored itself in the offline economy, serving high-value retail sectors with credit, POS, and loyalty integrations. Razorpay, on the other hand, has scaled rapidly through digital onboarding, API-led banking, and transaction-based credit; powering over 5 million businesses across India. While their strategies differ, hardware-first vs. cloud-first,their ambition converges: owning the entire merchant value chain. In a hybrid India where both kiranas and D2C brands thrive, Pine Labs and Razorpay have become foundational to how businesses pay, borrow, and grow.