Noida-based fintech giant Pine Labs has officially received approval from the Securities and Exchange Board of India (SEBI) to launch its highly awaited IPO (Initial Public Offering).
The company had filed its draft red herring prospectus (DRHP) in late June and got SEBI’s go-ahead on September 11. This green signal sets the stage for one of the most closely watched IPOs in India’s fintech sector this year.
Share Sale Structure
The IPO will consist of a fresh issue of shares worth up to Rs 2,600 crore ($304 million) along with an offer for sale (OFS) of 14.78 crore shares by existing investors.
Key stakeholders trimming their holdings include Peak XV Partners, Temasek’s Macritchie Investments, Actis, PayPal, Mastercard, Invesco, Madison India Capital, Lightspeed Venture Partners, MW XO Digital Finance, and Lone Pine Capital’s Lone Cascade. Co-founder Lokvir Kapoor will also sell a portion of his stake.
Investors Exit Partially
Among the selling investors, Peak XV Partners is set to offload up to 39 million shares, cutting its 20.35% ownership by around 3.6%. Similarly, Actis and Temasek will trim their stakes by about 1.4% each.
Pine Labs has also kept the door open for a pre-IPO placement of up to Rs 520 crore, subject to board and regulatory approvals. If executed, this would reduce the size of the fresh issue proportionately.
Use of Proceeds
The proceeds from the fresh issue are planned for several strategic purposes. Around Rs 870 crore will go towards repaying or prepaying borrowings. A portion will also be invested in international subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE.
In addition, the company intends to strengthen cloud infrastructure, expand digital checkout solutions, enhance IT assets, and cover general corporate needs. This aligns with its vision of becoming a stronger global payments leader.
Journey and Growth
Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs started as a card-based payments provider. Over the years, it transformed into a full-stack merchant commerce platform.
Today, the firm offers point-of-sale terminals, online payment gateways, prepaid gift solutions, and digital checkout services to merchants not just in India, but also across the Middle East and Southeast Asia.
Profitability Before Listing
Unlike many fintech firms going public, Pine Labs enters the IPO market with profitability on its side. The company reported a net profit of Rs 44.97 crore in FY25, a sharp turnaround from a loss of Rs 182.31 crore in FY24.
Revenue growth has also been encouraging, with total income rising 25.5% year-on-year to Rs 1,735.1 crore while expenses rose only 3.3% to Rs 1,676.8 crore. In the first nine months of FY25, Pine Labs posted a profit of Rs 26.1 crore, compared with a loss of Rs 151.6 crore in the same period the year before.
Banking Partners Lead
The IPO is being managed by some of the world’s top investment banks. Axis Capital, Morgan Stanley India, Citigroup Global Markets India, J.P. Morgan India, and Jefferies India are acting as book-running lead managers.
Although the company has not yet disclosed the official timeline for the listing, CEO Amrish Rau earlier indicated that the public issue is likely to take place in the second half of 2025.
What is Pine Labs
Pine Labs is a merchant commerce and payments platform that connects businesses with digital payment and financing solutions. Over its 25-year journey, it has built a strong presence in India and expanded internationally.
From enabling small shops with affordable card machines to offering cloud-based checkout, BNPL (Buy Now, Pay Later) solutions, and gift card platforms, Pine Labs has played a key role in India’s digital payments revolution. Its consistent focus on technology, partnerships, and merchant empowerment has made it one of the most trusted fintech companies in Asia.
Looking Forward
The upcoming IPO is more than just a fundraising exercise—it is a defining moment for Pine Labs. With profitability achieved, strong global ambitions, and a diversified product suite, the company is positioning itself as a serious global fintech contender.
As investors watch closely, Pine Labs’ stock market journey could pave the way for more Indian fintechs to tap public markets, while strengthening India’s position in the global digital payments ecosystem.
