Pine Labs IPO & Global Expansion Plans

Pine Labs IPO: Valuation and Global Expansion Plans

Pine Labs, an Indian merchant-commerce company with backing from PayPal and Mastercard, is set to launch its initial public offering (IPO) this week.

Valuation Adjustment

The company’s valuation has been adjusted to approximately 40% lower than its previous private funding round.

Pine Labs has established a price range of ₹210–₹221 (roughly $2.00–$2.50) per share.

This values the firm at around ₹254 billion (approximately $2.9 billion) at the upper end of the stated range.

The current valuation signifies a decrease of about 40% from the over $5 billion valuation achieved in 2022.

Offering Details

The primary share offering has been reduced by 20% to ₹20.8 billion (approximately $234 million), down from the initially filed ₹26 billion.

The offer for sale has also been decreased by 44%, now totaling 82.3 million shares, compared to the previously planned 148 million shares.

Investor Participation

Key existing investors, including Peak XV Partners, Temasek Holdings, PayPal, and Mastercard, are participating in the offering by selling portions of their holdings.

According to CEO Amrish Rau, investors opted to retain larger stakes, resulting in a reduced offer for sale.

Rau emphasized the importance of maintaining investor goodwill and support for a successful IPO launch.

Company Evolution and Services

Founded in 1998, Pine Labs began by deploying point-of-sale terminals for merchants.

The company has since broadened its services to include bill payments via platforms like Amazon Pay and CRED.

Pine Labs also facilitates transactions based on account aggregator technology, offering a comprehensive suite of payment and transaction solutions.

Revenue Breakdown

Currently, around 70% of Pine Labs’ revenue is derived from its digital infrastructure and transaction services.

The remaining 30% comes from its issuing and acquiring businesses, as stated by Rau.

Global Ambitions and Government Support

Pine Labs already serves international clients and intends to expand its global footprint following its listing on Indian stock exchanges.

This expansion aligns with the Indian government’s initiative to foster globally competitive fintech companies.

The company is also part of a growing trend of technology firms relocating their headquarters to India.

Current Market Presence

Pine Labs currently serves over 980,000 merchants, 716 consumer brands, and 177 financial institutions.

The platform has processed more than 6 billion transactions, totaling over ₹11.4 trillion (around $128 billion).

The company operates in 20 countries, including Malaysia, Singapore, Australia, Africa, the UAE, and the U.S.

International Revenue Growth

Between fiscal years 2023 and 2025, Pine Labs experienced nearly 58% growth in revenue from international markets.

Competitive Landscape and Profitability

In India, Pine Labs competes with companies such as Razorpay, Paytm, and PhonePe (owned by Walmart).

The company achieved profitability in the June quarter, reporting a net profit of ₹47.86 million (about $540,000).

This contrasts with a loss of ₹278.89 million in the same quarter of the previous year.

Operational revenue increased by 17.9% year-over-year to ₹6.16 billion (around $69 million) during the quarter.

Overseas business contributed approximately 15% to total revenue, amounting to ₹943.25 million (roughly $11 million), up from ₹795.97 million a year earlier.

Upcoming IPOs

Pine Labs’ listing is occurring alongside preparations for IPOs from other Indian technology companies.

These include Groww, Lenskart, Shadowfax, Meesho, and BoAt, all anticipated to launch their offerings this year.