India’s fintech frontrunner Pine Labs has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), setting the wheels in motion for one of the most anticipated IPOs in the country’s digital payments sector. The offering, expected to launch in the second half of FY26, aims to raise up to ₹6,000 crore through a combination of fresh equity and secondary share sales.
IPO Structure And Fundraising Blueprint
- The IPO will include a fresh issue of shares worth ₹2,600 crore
- An offer for sale (OFS) of up to 147.8 million shares will allow early investors to partially exit
- The company is targeting a valuation between ₹50,000 crore and ₹70,000 crore, or approximately 6 to 8 billion dollars
- Proceeds from the fresh issue will be used for repayment of borrowings, investment in subsidiaries and business units, and enhancement of IT infrastructure and digital capabilities
Bookrunners And Advisory Consortium
- Pine Labs has appointed Axis Capital, Morgan Stanley, JP Morgan, Citi, and Jefferies as book-running lead managers
- Axis Capital will serve as the sole domestic advisor, while the global banks will lead international investor outreach and roadshows
Business Evolution And Strategic Positioning
- Founded in 1998, Pine Labs began as a card-based payments provider and has since evolved into a full-stack fintech platform
- Its offerings include point-of-sale terminals, EMI-based financing, gift card solutions, online payment gateways, and Buy Now Pay Later (BNPL) products
- The company serves over 500,000 merchants across India, Southeast Asia, and the Middle East
- Strategic acquisitions such as Setu, Qwikcilver, and Fave have strengthened its embedded finance and consumer engagement capabilities
Financial Performance And Market Outlook
- For FY24, Pine Labs reported operating revenue of ₹1,743 crore, reflecting a 10 percent year-on-year growth
- Losses widened to ₹339 crore, driven by increased investments in technology and international expansion
- EBITDA stood at ₹286 crore, indicating operational resilience despite profitability pressures
Regulatory Realignment And IPO Readiness
- In April 2025, Pine Labs completed a reverse flip, shifting its domicile from Singapore to India to align with SEBI’s listing norms
- The company restructured as a public entity and appointed independent directors to meet regulatory requirements
- This move follows a previously shelved plan to list in the US in 2022
Investor Backing And Valuation Dynamics
- Pine Labs has raised over 1.3 billion dollars from marquee investors including Temasek, PayPal, Mastercard, Peak XV Partners, and Alpha Wave
- While its last private valuation stood at 5 billion dollars, current investor sentiment suggests a more conservative pricing range of 2.5 to 3.5 billion dollars
- Analysts believe a well-priced IPO could set a benchmark for other fintech startups eyeing domestic listings
Sectoral Context And SEBI Reforms
- The IPO comes amid a broader wave of fintech listings in India, with players like Groww, PhonePe, and Meesho also preparing to go public
- Recent SEBI reforms, including relaxed norms for reverse flipping and ESOP retention, have improved IPO readiness for startups
- These regulatory changes are expected to encourage more homegrown listings and reduce the trend of overseas incorporations
Sources: Reuters, Economic Times, TechStory, Moneycontrol, TICE News, Entrackr, The Hindu Business Line, NewsBytes India, Zerodha
