Pine Labs to File DRHP for Up to $700 Million IPO

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Pine Labs, one of India’s leading merchant payments and fintech platforms, is set to take a significant step towards its long-awaited public debut. The Noida-based company is set to file its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) by the end of June, aiming to raise between ₹5,000–6,000 crore ($585–700 million) through an initial public offering (IPO).

IPO Details and Valuation

  • Issue Size: Pine Labs is targeting an IPO in the range of $585–700 million.
  • Valuation: The listing values the company at $4–5 billion, broadly in line with its last private funding round.
  • Bankers: The company has appointed Axis Capital, JP Morgan, Morgan Stanley, Citi, and Jefferies as lead bankers for the issue.
  • Timeline: The DRHP filing is expected by June-end, with the IPO planned for later this year, subject to market conditions.

Strategic Moves and Preparations

Pine Labs has been preparing for a public listing for several years. The company previously filed confidential IPO papers with the U.S. Securities and Exchange Commission (SEC) in 2022, but that plan was halted in favor of an Indian listing. Earlier this year, Pine Labs completed its transition of domicile from Singapore to India, a move seen as improved for its domestic IPO ambitions. The company also transformed into a public entity and appointed independent directors as part of its IPO readiness.

Business Overview and Growth

Founded in 1998, Pine Labs started as a loyalty and card-based payments solution provider before becoming a full-stack merchant payments platform. Over the past four years, it has expanded its offerings to include online payment gateways, buy-now-pay-later solutions, and consumer fintech products. Notably, Pine Labs acquired Southeast Asian fintech startup Fave in 2021 and Bengaluru-based Setu in 2022, further broadening its digital and international footprint.

The company serves over 500,000 merchants across India, the Middle East, and Southeast Asia, and counts marquee investors such as Peak XV Partners, Temasek, PayPal, and Mastercard among its backers. To date, Pine Labs has raised nearly $1.3 billion in funding.

Financial Performance

For the fiscal year ending March 2024, Pine Labs reported a 2.8% increase in operating revenue to ₹1,317 crore. However, its losses increased significantly, going more than threefold to ₹187 crore during the same period. The company’s latest reported private valuation stands at $5 billion, though some investors have marked it down in recent quarters before revising it upwards again.

Market Context and Outlook

Pine Labs’ IPO comes at a time when Indian stock markets have been volatile, with fintech peers such as Groww and PhonePe also preparing for their public listings. Despite the challenging environment, CEO Amrish Rau has emphasized the company’s focus on long-term value creation rather than short-term market fluctuations.

If successful, Pine Labs’ IPO will be the largest by an Indian fintech since Paytm’s $2.5 billion listing in 2021. The offering is expected to comprise both fresh issuance of shares and an offer-for-sale component, allowing existing investors to partially exit.

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