Noida-based fintech unicorn Pine Labs files IPO: the company has submitted its Draft Red Herring Prospectus (DRHP) to SEBI, aiming to raise ₹2,600 crore ($304 million) through a fresh equity issue and offer-for-sale (OFS) from existing backers
IPO Structure & Stake Sale
The IPO includes a ₹2,600 crore fresh issuance and an OFS of up to 14.78 crore shares (147.8 million)—with investors like Peak XV (formerly Sequoia India), PayPal, Mastercard, Temasek, Actis, and co-founder Lokvir Kapoor expected to reduce stakes.
Use of Proceeds
- ₹870 crore earmarked for debt repayment
- ₹60 crore to fund subsidiaries in Singapore, Malaysia, UAE
- ₹760 crore for technology investments, cloud infrastructure, and POS upgrades
- Balance allocated to general corporate purposes and possible inorganic growth
Financials & Business Snapshot
In FY24, Pine Labs reported revenue of ₹1,743 crore—up from ₹1,600+ crore—with a net loss of ₹339 crore (widened from ₹227 crore in FY23). However, the company turned profitable in the first nine months of FY25 with a ₹26 crore net profit. Pine Labs now works with over 900,000 merchants across India and international markets
Strategic Rationale
The IPO will fund overseas expansion, strengthen fintech infrastructure, accelerate R&D and tech deployment, and support growth in POS, BNPL, gift cards, and loyalty solutions moneycontrol
IPO Timeline & Management
- Filed DRHP: June 26, 2025
- Bookrunners: Morgan Stanley, Citi, Axis Capital, JP Morgan India, Jefferies
- Potential Pre-IPO placement: ₹520 crore, which would reduce fresh issue size accordingly
Conclusion
By filing its DRHP, Pine Labs files IPO signals a major milestone for the fintech sector. With backing from leading global investors and strong financial growth, the ₹2,600 crore raise will fuel debt reduction, global reach, and tech innovation—positioning Pine Labs for its next growth phase.
