Fintech company Pine Labs, based in Noida, receives approval from SEBI for their Initial Public Offering (IPO)
Indian fintech firm Pine Labs has received approval from the Securities and Exchange Board of India (SEBI) to launch its initial public offering (IPO), marking a significant milestone in the company's growth.
Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs has evolved from a card-based payments provider into a full-stack merchant commerce platform. The company offers point-of-sale terminals, online payment gateways, and other digital payment solutions to merchants across India, the Middle East, and Southeast Asia.
The proposed offering will comprise a fresh issue of shares worth up to Rs 2,600 crore ($304 million) and an offer for sale of as many as 14.78 crore shares by existing investors. Among the investors set to pare holdings are Peak XV Partners, Temasek's Macritchie Investments, Actis, PayPal, Mastercard, Invesco, Madison India Capital, Lightspeed Venture Partners, MW XO Digital Finance, Lone Pine Capital's Lone Cascade, and Pine Labs co-founder Lokvir Kapoor.
The IPO is being managed by a consortium of global investment banks, including Axis Capital, Morgan Stanley India, Citigroup Global Markets India, J.P. Morgan India, and Jefferies India. Proceeds from the new share sale will be directed toward repaying or prepaying borrowings of about Rs 870 crore.
Pine Labs has turned profitable ahead of its public debut, reporting a net profit of Rs 44.97 crore in FY25. The firm also plans to use the funds to strengthen its cloud infrastructure, expand digital checkout solutions, enhance IT assets, and cover general corporate purposes. The company has also left room for a pre-IPO placement of up to Rs 520 crore, subject to board and regulatory approval.
The IPO is expected to take place in the second half of 2025, according to CEO Amrish Rau. Expenses increased just 3.3% to Rs 1,676.8 crore in FY25. Total income for FY25 rose 25.5% year-on-year to Rs 1,735.1 crore. In the first nine months of FY25, Pine Labs recorded a profit of Rs 26.1 crore compared with a loss of Rs 151.6 crore in the same period the previous year.
Peak XV alone plans to offload up to 39 million shares, trimming its 20.35% ownership by about 3.6%. Actis and Temasek are each expected to reduce their stakes by roughly 1.4%. Pine Labs filed its draft red herring prospectus (DRHP) in late June and secured SEBI's observations on September 11.
As Pine Labs prepares for its IPO, it continues to expand its services and reach, positioning itself as a key player in the Indian fintech landscape. The company's successful transition into a full-stack merchant commerce platform and its strong financial performance bode well for its future as a publicly traded entity.
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