Pine Labs Files DRHP for IPO with ₹2,600 Cr Fresh Issue, OFS by Key Investors

Mumbai, June 26: Digital payments and merchant commerce platform Pine Labs Limited has filed its Draft Red Herring Prospectus (DRHP) with SEBI for an initial public offering (IPO), comprising a fresh issue of equity shares aggregating up to ₹2,600 crore. The issue will also include an Offer for Sale (OFS) of up to 147.82 million equity shares by existing investors.

The company seeks to list its equity shares on both the BSE and NSE.

The price band, bid lot, and IPO opening and closing dates will be announced closer to the launch.

IPO Snapshot

Company Overview

Founded in 1998, Pine Labs began as a point-of-sale (PoS) provider and has since evolved into a full-stack fintech platform serving merchants, brands, and financial institutions. Its offerings include:

• Digital PoS & QR-based payment acceptance
• Buy Now Pay Later (BNPL)
• Prepaid gifting and loyalty solutions
• API-based fintech infrastructure via subsidiaries like Setu

The company operates across India, Southeast Asia, UAE, and other global markets, and has processed over ₹7.5 lakh crore in annualized gross transaction value (GTV) as of FY24, according to its pro forma financials.

Financials

As per the DRHP, Pine Labs posted:

• FY24 Revenue: ₹1,382.6 crore (Restated Consolidated)
• Loss after Tax (FY24): ₹187.2 crore
• Adjusted EBITDA (FY24): Positive, as per DRHP notes
• Net Worth (as of Dec 2024): ₹2,042 crore

The company’s losses have narrowed over the years, with a stronger push toward operational efficiency and international expansion.

Objects of the Issue

The company intends to utilise the net proceeds of ₹2,600 crore towards:

• Repayment/prepayment of borrowings (~₹870 crore)
• Investment in overseas subsidiaries (~₹600 crore)
• Technology upgrades & cloud infra (~₹7,600 crore allocation across tech and DCP procurement)
• Inorganic acquisitions & general corporate purposes

Key Shareholders & OFS Participants

The Offer for Sale includes up to 147.82 million shares by major investors such as:

• Peak XV Partners (Sequoia Capital India)
• Actis Capital
• PayPal Pte Ltd
• Mastercard Asia/Pacific
• Lokvir Kapoor (Founder)
• Invesco, Madison India, and others

Pine Labs is a professionally managed company with no identifiable promoter, as per SEBI regulations.

Lead Managers & Registrar

The IPO is being managed by a consortium of top investment banks:

• Morgan Stanley, Goldman Sachs, Kotak Mahindra Capital,
• ICICI Securities, IIFL Securities, and SBI Capital Markets

KFin Technologies Limited is the registrar of the offer.

What to Watch

• Pine Labs competes with Razorpay, Paytm, PhonePe in payments and BNPL
• The IPO tests market appetite for fintech firms post Zomato and Paytm’s mixed listing outcomes
• Global expansion and regulatory dependencies, especially in India and Southeast Asia, remain key risks
• No promoter entity, making it one of India’s largest listed fintechs run by a professional management team

Conclusion

Pine Labs’ IPO is set to be a marquee fintech listing in 2025, with strong institutional backing and a wide suite of digital payment and issuing products tailored for India’s rapidly digitising commerce landscape.

REF: https://nsearchives.nseindia.com/corporate/Registration_26062025131338_PineLabsLimitedDRHP__.pdf

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