Strengthening the API Fintech Stack
Pine Labs, India’s leading merchant commerce platform, has acquired Setu, a Bengaluru-based API fintech startup known for its cutting-edge products. This marks Pine Labs’ third acquisition this year, reinforcing its commitment to expand its footprint in embedded finance and digital infrastructure.
This acquisition aligns with Pine Labs’ strategy to dominate the evolving embedded finance market — a space expected to exceed $138 billion by 2026.
Embedded Finance Gets a Boost
Setu’s APIs help businesses build financial experiences around customer needs — from digital signatures to bill payments and UPI collections. Now, combined with Pine Labs’ merchant and issuer network, the possibilities for innovation and reach have expanded exponentially.
Setu’s technology powers a range of use cases across startups, banks, insurers, lenders, and retail brands. Their impact is visible in Aadhaar eSign, BBPS bill pay, WhatsApp collections, FASTag integrations, and more.
A Shared Vision for Open Finance
Commenting on the deal, B Amrish Rau, CEO of Pine Labs, said:
“Setu will make an incredible addition to our platform for a few reasons. Embedded financial services and open banking are the future.”
He noted that Setu’s role in UPI and the Account Aggregator ecosystem aligns perfectly with Pine Labs’ ambitions to support consent-driven, accessible finance across India.
Backed by Industry Stalwarts
The move also received endorsement from Nandan Nilekani, Co-founder of Infosys and architect of India Stack:
“The kind of infra Setu is building will be very important for India. This partnership will accelerate their journey.”
His comments reflect a growing belief in the power of India’s digital public infrastructure — especially when embedded finance is combined with open APIs and trusted frameworks like DEPA.
Building for a Consent-Driven Future
Setu has been instrumental in advancing the Account Aggregator model, which allows users to access financial services via secure data-sharing. These aggregators, regulated as NBFC-AAs, operate under NITI Aayog’s DEPA framework and promote full user consent.
Setu’s APIs are designed for flexibility and developer accessibility, ensuring broader democratization of fintech solutions. The company believes open technology will drive better outcomes for customers and institutions alike.
The Road Ahead
With this acquisition, Pine Labs gains not just API infrastructure, but also a team of builders and entrepreneurs with proven experience. The company plans to use Setu’s technology to enhance areas like loan monitoring, credit underwriting, and personal finance management.
According to Setu Co-founder and CEO Sahil Kini:
“We are excited by Pine Labs’ investment. Together, we can enable a smarter, more inclusive financial ecosystem.”
Final Thoughts
This deal signals a big moment for India’s digital finance ecosystem. With Pine Labs and Setu joining forces, embedded finance becomes smarter, faster, and more accessible.
From UPI to Account Aggregators, the infrastructure is now in place to deliver next-generation financial products at scale — and this is just the beginning.