Pine Labs IPO: Strong India Market Response Despite Valuation Cut

Pine Labs Makes Strong Market Debut Following IPO

Pine Labs, a payment technology firm with backing from PayPal and Mastercard, experienced a successful first day of trading on Friday. Shares closed 14% higher despite a lowered valuation for its $440 million initial public offering (IPO).

This listing marks the second-largest fintech IPO in India this year, following Groww’s debut of approximately $750 million earlier in the week.

Stock Performance and Valuation

The stock commenced trading at ₹242 and peaked at ₹284 before concluding at ₹252. This represents an increase from the initial issue price of ₹221.

Consequently, the Gurugram-based company achieved a market capitalization of ₹289 billion, equivalent to roughly $3.3 billion.

While a reduction from the $5 billion+ private valuation held in 2022, the performance indicates robust investor confidence in India’s expanding fintech sector and its global ambitions.

Company Overview and Expansion

Established in 1998, Pine Labs has consistently broadened its operational scope beyond India.

Currently, the company operates across 20 markets, including Malaysia, Singapore, Australia, the UAE, the U.S., and select African nations.

Initially a provider of point-of-sale terminals, Pine Labs has evolved into a comprehensive payments platform.

It now facilitates bill payments, account-aggregator transactions, and a diverse array of merchant and acquiring services.

Competitive Landscape and Financial Results

Within India, Pine Labs faces competition from companies such as Razorpay, Paytm, and PhonePe, which is owned by Walmart.

The company achieved profitability in the June quarter, reporting a net profit of ₹47.86 million (approximately $540,000). This contrasts with a loss of ₹278.89 million in the same period last year.

Revenue from operations increased by 17.9% year-over-year, reaching ₹6.16 billion (around $69 million).

Overseas operations contributed approximately 15% to total revenue, rising from ₹795.97 million to ₹943.25 million year-over-year.

Leadership Perspective

“We will never stop being a startup,” stated Amrish Rau, CEO of Pine Labs, during the public listing ceremony.

He added that the term "startup" would no longer be used within the company’s offices, signifying a new phase of growth.

Investor Activity

Existing investors, including Peak XV Partners, Temasek Holdings, PayPal, and Mastercard, participated in selling portions of their holdings during the public listing.

Strategic Focus and Competitive Advantage

“Pine Labs never wanted to compete on price,” explained Shailendra Singh, managing director at Peak XV Partners.

“It always wanted to compete on a superior proposition. We believe this company will continue to grow due to the strong competitive advantages it possesses.”

Peak XV Partners’ Investment History

Peak XV Partners, formerly Sequoia Capital, initially invested in Pine Labs in 2009, during the global financial crisis.

The firm is currently experiencing a period of back-to-back partial public exits, with Pine Labs being its second portfolio company to list this week, following Groww.

Groww’s debut on Indian exchanges saw a 12% increase and closed its first trading day 29% above its issue price of ₹100.

Broader Market Trends

Pine Labs’ market entry is part of a larger trend of increased public listings in India.

Startups across various sectors – including technology, fintech, e-commerce, and manufacturing – are opting to go public.

This is driven by strong domestic investor demand, easing interest rates, and regulatory support for listings.

Globally, the finance sector has led IPO activity this year, with IPOs totaling $34.34 billion as of 2025, more than double the $14.05 billion raised during the same period in 2024, according to Dealogic.

Future Outlook

Following its public debut, Pine Labs intends to expand its geographic reach and strengthen its presence in India.

The company plans to introduce new products and services tailored to the rapidly growing, internet-savvy consumer base in India.

“Our core business will keep expanding. Our moats will be strengthened, and margins will grow,” Rau concluded.