Pine Labs IPO: Start-Up Files DRHP with Sebi, Eyes ₹2,600 Cr Fresh Issue

Pine Labs has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), signalling its intent to go public with a fresh issue of ₹2,600 crore and an offer for sale (OFS) of up to 147.8 million shares.

The Noida-based merchant-commerce firm is backed by prominent global fintech investors, including Peak XV Partners (formerly Sequoia India), Temasek’s MacRitchie Investments, PayPal, Mastercard, Invesco, Actis and Madison India, who are looking to partially exit through the OFS. Co-founder Lokvir Kapoor is also offloading a portion of his stake.

The proceeds from the fresh issue will be used to repay debt and invest in subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions Malaysia and Pine Labs UAE to expand its presence outside India. Additionally, the company may consider raising ₹520 crore in a pre-IPO round.

Pine Labs IPO

Pine Labs reportedly plans to raise ₹5,000–6,000 crore through an initial public offering (IPO) at a valuation of $4–5 billion, aligning with its most recent private valuation.

Pine Labs has appointed Axis Capital, JP Morgan, Morgan Stanley, Citi and Jefferies as bankers for the offering.

The company has been contemplating a public listing for several years and reportedly filed confidential IPO documents with the US Securities and Exchange Commission (SEC) in 2022. However, that plan did not materialise, and the company shifted its focus to an Indian listing.

The Noida-based company, previously headquartered in Singapore, completed its reverse flip on 9 April after receiving clearance from the National Company Law Tribunal’s Chandigarh bench.

Pine Labs also transitioned to a public business and appointed independent directors, indicating that its DRHP filing was forthcoming.

Pine Labs Financials

According to startup-data intelligence platform TheKredible, Pine Labs has raised nearly $1.3 billion in capital to date from investors including Peak XV Partners, Temasek, PayPal, Mastercard and others.

The company currently holds a private valuation of $5 billion.

Pine Labs’ operating revenue grew by 2.8 % to ₹1,317 crore for the fiscal year ending March 2024. However, its losses surged significantly, more than tripling to ₹187 crore during the same period. The company has not yet disclosed its fiscal year 2025 results.

Pine Labs will join Groww, a stockbroking and wealth-management firm that filed a DRHP with the market regulator in May, aiming to raise $700 million to $1 billion through an IPO. Walmart-owned PhonePe is also expected to apply for an IPO in the third quarter of this year.