Despite a 40% valuation cut, the Indian fintech firm backed by PayPal and Mastercard is focused on scaling its platform across international markets
A Lower Valuation, But a Broader Vision
Pine Labs is set to go public this week at a valuation of ₹254 billion (~$2.9 billion) — 40% lower than its last private valuation in 2022. The Gurugram-based fintech unicorn, backed by PayPal, Mastercard, Peak XV Partners, and Temasek, is launching its IPO with a price band of ₹210–₹221 per share (~$2.00–$2.50).
- The company has reduced its primary issue by 20% to â‚ą20.8 billion (~$234 million).
- The offer-for-sale component has been slashed by 44%, signaling that investors chose to retain more shares amid market conditions.
Despite the markdown, Pine Labs is doubling down on its international growth strategy — positioning its fintech stack for global adoption.
Why the Valuation Cut?
CEO Amrish Rau cited the company’s focus on long-term goodwill and inclusive support from stakeholders as reasons for the conservative pricing.
“We wanted to garner goodwill… It takes a village to create a successful IPO,” Rau said at a press conference.
Rather than chasing a higher valuation, Pine Labs is aiming for market confidence and post-listing performance — a prudent move in a volatile IPO environment.
Fintech Roots to Global Reach
Founded in 1998, Pine Labs began by offering point-of-sale (PoS) systems to merchants. Over time, it has evolved into a full-stack fintech platform, enabling:
- Digital payments & bill pay through Amazon Pay and CRED
- Account aggregator-based transactions
- Issuing, acquiring, and embedded finance services
Today, 70% of Pine Labs’ revenue comes from digital infrastructure and transaction services, while the rest is from its card issuing and merchant acquiring business.
A Profitable Turn and Strong Metrics
The company reported a net profit of ₹47.86 million (~$540,000) in Q1 FY2025 — a turnaround from a ₹278.89 million loss a year prior.
- Revenue from operations rose 17.9% YoY to â‚ą6.16 billion (~$69 million).
- Overseas revenue contributed 15% (~â‚ą943 million / $11 million), up from â‚ą795 million last year.
This return to profitability makes Pine Labs one of the few profitable Indian fintechs going public.
Global Ambitions Rooted in Indian Innovation
Pine Labs already operates in 20 countries, including Singapore, Malaysia, UAE, Australia, the U.S., and parts of Africa. International revenue has grown 58% between FY2023 and FY2025, and Rau says the company’s India-built fintech stack is in high demand globally.
“What we’ve done in fintech in India, no other country has matched… Now we’re exporting that IP.”
With a customer base of over 980,000 merchants, 716 consumer brands, and 177 financial institutions, the company’s scale and expertise in high-volume, low-cost transaction systems give it a competitive edge abroad.
Part of a Larger IPO Wave
Pine Labs joins a growing cohort of Indian tech firms headed to public markets this year, including:
- Groww (investment platform)
- Lenskart (eyewear D2C)
- Meesho (social commerce)
- Shadowfax (logistics)
- boAt (consumer electronics)
This reflects both a maturing Indian startup ecosystem and a push to bring innovation to domestic markets and public investors.
Strategic Shift to India
Pine Labs is also part of a movement by Indian tech companies to relocate headquarters to India for closer alignment with domestic regulators and retail capital markets. This aligns with the Indian government’s push to build globally competitive, locally anchored fintech champions.
Pine Labs is going public at a $2.9B valuation — down 40% from its peak — while focusing on expanding its fintech services globally. With strong profitability, a growing international footprint, and backing from major investors, the IPO marks a pivotal step in India’s fintech story going global.
