Investor Pullback Forces Pine Labs to Scale Down IPO Size to $700 Mn

Fintech major Pine Labs is likely to trim its IPO size from $1 billion to $700 million. The start-up is expected to go public in the second half of October 2025, according to Bloomberg reports. It also stated that existing backers of Pine Labs have decided to pull back, which prompted the fintech to trim the size of its OFS (offer-for-sale) component.

Previously, it was reported that investors, including Peak XV Partners, London-based Actis, PayPal, Mastercard Asia/Pacific, Temasek through Macritchie Investments, Invesco, Madison India Capital, MW XO Digital Finance Fund Holdco, Lone Cascade LP, and Pine Labs co-founder Lokvir Kapoor will be divesting their shares in the fintech firm under the OFS segment.

However,with some of these shareholders now reconsidering their exit plans, the company has scaled back the overall offer size.

The Temasek and Peak XV Partners-backed start-up has filed preliminary papers with the capital markets regulator Sebi last week to mobilise funds through an initial public offering (IPO).

The company will use funds worth ₹60 crore for investment in its subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions, Malaysia, and Pine Labs UAE for expanding the presence outside the country, and the balance for general corporate purposes, and unidentified inorganic acquisitions.

Pine Labs Shows Steady Growth

Noida-based Pine Labs is a technology company focused on digitising commerce through digital payments and issuing solutions for merchants, consumer brands and enterprises, and financial institutions.

For the fiscal ended December 31, 2024, it has processed paytments worth ₹7,53,105 crore in gross transaction value and 3.97 billion transactions through its platforms.

The company had more than 9.15 lakh merchants, 666 consumer brands and enterprises, and 164 financial institutions, who used its platforms to enable transactions quickly, securely and easily manage their business.

According to the Redseer report, Pine Labs is one of the top five in-store digital platforms, and a prominent Bharat Bill Payment System transactions processing solutions provider in FY24.

The company competes with the likes of Paytm, Razorpay, Infibeam, PayU Payments, PhonePe in the domestic market and Adyen, Shopify and Block in the overseas markets.

For the fiscal ended December 31, 2024, the company reported a revenue from operations at ₹1,208.2 crore and profit after tax at ₹26.14 crore.