Sequoia’s Pine Labs Said to Seek Funding at $1 Billion Valuation

Pine Labs Pvt, the Indian payment and loyalty services provider controlled by Sequoia Capital, plans to seek a new round of funding at a valuation of about $1 billion, people with knowledge of the matter said.

Investors may be offered as much as a $250 million stake in the company, including existing shares being sold by Sequoia, according to the people. Pine Labs aims to raise about $100 million in fresh capital from the deal, one person said, asking not to be identified as the matter is private.

Pine Labs provides wireless point of sale terminals that allow merchants to accept credit-card payments, as well as offer financing, installment plans and loyalty programs. Its systems are used by customers including Amway Corp. and Hewlett-Packard Co. to process about 400,000 transactions daily at 50,000 outlets, according to its website.

Sequoia, an early backer of technology giants such as Google Inc. and LinkedIn Corp., owns about 70 percent of Pine Labs, three people said. The venture-capital firm, which first bought a stake in Pine Labs in 2009, has invested less than $20 million in the company through multiple tranches, according to one of the people.

Plans for the fundraising are at an early stage and details such as valuation could change, the people said. Several calls to the company’s headquarters, located in the industrial hub of Noida near Delhi, weren’t answered. Pine Labs Chief Financial Officer Vikas Bhasin didn’t respond to an e-mail seeking comment while Raja Ganapathy, a Mumbai-based spokesman for Sequoia, said he couldn’t immediately comment.