Pine Labs’ Q2 Profit Jumps Sixfold, Ace Blend Raises $9.9 Mn, and More Startup Updates

India’s startup ecosystem saw several notable developments this week, with fintech major Pine Labs reporting a sharp rise in quarterly profit, nutrition brand Ace Blend securing fresh funding, and logistics company Shadowfax posting strong financial growth.

Other key developments include precision manufacturing startup Venttup raising $3 million, B2B ecommerce company Bijnis rebranding as Zorit, and the Enforcement Directorate investigating alleged foreign exchange violations involving three crypto platforms.

Here’s a closer look at the latest developments.

## Pine Labs’ Q2 Profit Rises More Than Sixfold

Fintech company Pine Labs reported a strong performance in Q2 FY27, with its net profit increasing more than sixfold year-on-year (YoY) to ₹38.6 crore, compared with ₹6 crore in the corresponding quarter last year.

Operating revenue grew 24% YoY to ₹806.2 crore. Including other income of ₹25.6 crore, the company's total income reached ₹831.7 crore.

Total expenses increased at a slower pace, rising 16% to ₹770.4 crore from ₹661.7 crore a year earlier.

The company’s adjusted EBITDA grew 27% YoY to ₹215.5 crore, with an EBITDA margin of 19.2%. Operating cash flow doubled to ₹350 crore, while its net cash balance stood at ₹2,345 crore as of September 30, 2026.

### Payments and International Operations Drive Growth

Pine Labs recorded double-digit growth across both its major business verticals.

Revenue from its digital infrastructure and transaction platform (DITP) business increased 21% YoY to ₹440.1 crore. Meanwhile, revenue from its issuing and acquiring platform (AIP) rose 30% to ₹274.6 crore.

The company processed gross transaction value (GTV) of approximately ₹4.45 lakh crore across 229 crore transactions during the quarter. Its merchant network expanded 13% to 11.6 lakh, while digital checkout points grew 17% to 2.23 lakh.

International markets contributed 15% of the company's revenue in Q2 FY27. Pine Labs currently operates in more than 22 markets, with Southeast Asia emerging as an important growth region.

Revenue from Southeast Asia increased around 40% YoY, while its digital checkout points in the region nearly tripled to 1 lakh. Its UAE business also crossed 1 lakh daily transactions.

### Pine Labs Eyes Opportunity From UPI Merchant Fees

Pine Labs expects to benefit from the proposed merchant discount rate (MDR) framework for eligible UPI transactions above ₹2,000.

The proposed framework could create a new revenue opportunity for payment service providers and acquiring banks. Pine Labs said more than 65% of its UPI GTV comes from transactions exceeding ₹2,000.

To strengthen its merchant presence, the company plans to deploy an additional 10 lakh soundboxes at merchant locations where UPI payments are currently processed through competing devices.

CEO Amrish Rau said the company intends to balance investments in new products and markets while maintaining EBITDA margins above 20% and targeting revenue growth of 21-23%.

## Ace Blend Raises $9.9 Mn in Series A2 Round

D2C nutrition brand Ace Blend has raised approximately $9.9 million (around ₹95 crore) in its Series A2 funding round, led by 3one4 Capital.

The company plans to use the capital to strengthen its research and development capabilities, conduct clinical trials, improve its supply chain and expand product testing.

Founded in 2018, Ace Blend offers dietary supplements across several categories, including heart health, brain health, sleep, gut health and immunity. Its portfolio currently includes around 14 products.

The company is targeting annual recurring revenue of ₹250-300 crore over the next 12-18 months.

Ace Blend operates in India's growing preventive healthcare and dietary supplements market, where rising consumer awareness and demand for wellness products are creating opportunities for specialised brands.

## Shadowfax’s Q2 Profit Jumps More Than Fivefold

Logistics company Shadowfax reported a sharp improvement in its Q2 FY27 financial performance.

The company's net profit increased more than fivefold year-on-year to ₹68 crore, while operating revenue grew 57% to a record ₹1,537.7 crore.

Its adjusted EBITDA rose 177% to ₹77 crore, with the margin improving to 5% from 2.8% in the year-ago quarter.

On the operational front, Shadowfax delivered 27.1 crore orders across its express parcel and hyperlocal businesses during the quarter.

Its 360 platform, which serves ecommerce sellers, also crossed 6,700 transacting sellers within two quarters of launch.

Founded in 2015, Shadowfax provides last-mile delivery services to ecommerce platforms and direct-to-consumer brands. The company went public in January 2026 through an IPO that raised ₹1,907 crore.

## Venttup Raises $3 Mn to Expand Manufacturing Capabilities

Precision manufacturing startup Venttup has raised $3 million in a Pre-Series A funding round led by Rainmatter and Unicorn India Ventures.

The startup will use the fresh capital to expand its hiring, strengthen its rapid prototyping infrastructure and scale its AI-led sourcing capabilities.

Founded in 2021, Venttup combines in-house engineering expertise with a network of manufacturing partners. Its services cover component development, testing and production for businesses across sectors such as new energy, mobility and smart infrastructure.

The company said it generated ₹10 crore in revenue in FY26. It also added more than 15 large enterprise customers over the past year and built a potential business pipeline worth approximately ₹30 crore.

## Bijnis Rebrands as Zorit, Raises ₹27 Cr

B2B ecommerce startup Bijnis has rebranded itself as Zorit after raising ₹27 crore in a funding round led by Sparrow Capital.

The company plans to use the capital to strengthen its inventory-led quick commerce model and expand its product selection for offline retailers.

Founded in 2015, Bijnis initially operated as an online marketplace connecting manufacturers with retailers. It shifted towards an inventory-led B2B quick commerce model in late 2024.

Under its new identity, Zorit aims to help retailers source products within 60 minutes. The company currently operates 12 dark stores across 12 cities and claims to have reached ₹120 crore in annualised sales.

Nearly half of its dark stores have also achieved break-even, according to the company.

## ED Investigates Crypto Platforms Over Alleged Forex Violations

The Enforcement Directorate (ED) has initiated an investigation into alleged foreign exchange violations involving crypto platforms Mudrex, Saber.money and Instadapp.

The probe concerns suspected unauthorised cross-border fund transfers worth more than ₹4,940 crore.

The agency's Bengaluru Zonal Office conducted searches at four premises on October 27, including three locations in Bengaluru and one in Madhya Pradesh.

The investigation is focused on the alleged use of cryptocurrencies, particularly stablecoins such as USDT and USDC, to facilitate international money transfers outside authorised channels.

The matter highlights the regulatory scrutiny facing crypto businesses operating in India, particularly around cross-border transactions and compliance with foreign exchange rules.

## What These Developments Mean for India’s Startup Ecosystem

This week's developments reflect activity across several parts of India's startup landscape.

Pine Labs and Shadowfax reported stronger financial performance, while Ace Blend and Venttup secured fresh funding to support their expansion plans. Zorit's rebranding signals a continued shift towards faster, inventory-led supply chains for offline retailers.

At the same time, the ED's investigation into crypto platforms highlights the compliance challenges facing businesses operating in digital assets and cross-border payments.

Together, these developments offer a snapshot of an ecosystem where companies are focusing on profitability, operational scale, new funding and evolving regulatory requirements.