Pine Labs Files DRHP for INR 2,600 Cr IPO; Turns Profitable Ahead of Listing
IPO Details: Fresh Issue and Offer for Sale
Pine Labs, the fintech unicorn, has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO) on Indian stock exchanges.
- The IPO comprises a fresh issue of shares worth up to INR 2,600 crore ($304 million) and an Offer for Sale (OFS) of up to 14.78 crore shares.
- Existing investors including Mastercard, Peak XV Partners, Macritchie Investments, PayPal, and cofounder Lokvir Kapoor will offload shares via the OFS.
- The company may also raise up to INR 520 crore in a pre-IPO round.
Utilisation of IPO Proceeds
- INR 870 crore: Repayment or prepayment of company and subsidiary borrowings.
- INR 760 crore: Investments in IT assets, cloud infrastructure, and digital checkout points.
- INR 60 crore: Investments in overseas subsidiaries (Qwikcilver Singapore, Pine Payment Solutions Malaysia, Pine Labs UAE) over FY26-FY28.
Valuation and Market Debut
- Pine Labs’ IPO will mark its first listing in India, after previously exploring a US IPO in 2022.
- Recent valuations place the company between $4-5 billion, with Peak XV Partners as the largest shareholder at 20.35%.
- Shares will be listed on NSE and BSE post-IPO.
Financial Performance: Profitability Achieved
- Turned profitable in 9M FY25:
- Profit after tax (PAT): INR 26.1 crore (vs. INR 151.6 crore loss YoY)
- Operating revenue: INR 1,208.2 crore (up 23% YoY)
- Expenses: INR 1,238.4 crore (up 3% YoY)
- This profitability comes ahead of the IPO, reflecting improved revenue growth and expense management.
Company Background and Growth
- Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay; transitioned from petroleum card payment solutions to a leading PoS and fintech solutions provider.
- Client base: Over 9.2 lakh merchants, 666 brands, 164 financial institutions across India, Southeast Asia, and the Middle East.
- Funding: Raised nearly $1.6 billion from global investors including Temasek, Actis, Fidelity, BlackRock, and others.
- Last major fundraising: $50 million from Vitruvian Partners at a $5B+ valuation; Fidelity later adjusted this to $4.5B.
Strategic Shifts and IPO Preparation
- Pine Labs started the reverse flip process in 2024, securing NCLT approval in April 2025 to move its listing plan to India.
- The company’s ability to achieve profitability and grow revenues strengthens its position ahead of the public listing.
