Pine Labs plans ₹2,600 cr IPO; Peak XV, PayPal to trim stakes

Pine Labs files DRHP to raise ₹2,600 crore via fresh issue and OFS; proceeds to repay debt, expand globally, and invest in tech and digital checkout

Fintech firm Pine Labs, in its draft red herring prospectus (DRHP) filed with the Securities and Exchange Board of India (Sebi), plans to raise ₹2,600 crore through a fresh issue and an offer for sale (OFS) of up to 147.82 million shares.

 

Pine Labs may consider a pre-IPO placement of up to ₹520 crore.

 

Investors such as Peak XV Partners, Actis, Macritchie, PayPal, Mastercard, AIM Investment Funds, and Madison India Opportunities IV, among others, are expected to partially exit through the OFS.

 

Pine Labs’ co-founder Lokvir Kapoor is offloading 3.76 million shares in the OFS.

 

Peak XV will pare down its stake by selling the largest chunk—39 million shares—in the OFS. PayPal and Mastercard will sell 11.50 million and 10.04 million shares, respectively.

 

Pine Labs chief executive officer (CEO) Amrish Rau’s pre-offer shareholding in the company stood at 2.35 per cent at the time of filing the DRHP. Peak XV Partners held a 20.35 per cent stake, followed by Temasek’s Macritchie at 7.1 per cent, PayPal at 6 per cent, Actis at 5.78 per cent, and Mastercard at 5.24 per cent. 

 

Book running lead managers include Axis Capital, Morgan Stanley, Citi, JP Morgan, and Jefferies.

 

Pine Labs was last valued at $5 billion when it last raised capital in 2022

 

The company will utilise the net proceeds from the offer to repay borrowings availed by Pine Labs and its subsidiaries.

 

Proceeds will also be directed towards expanding its international presence through investments in subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE, as well as procurement of digital checkout points and technology development initiatives.

 

For the nine-month period ended December 2024 (9MFY25), the company reported ₹1,208.1 crore in consolidated revenue from operations—up 23 per cent from ₹982 crore during the same period in 2023. 

 

It posted a profit of ₹26.14 crore for 9MFY25, compared to a loss of ₹151.63 crore in 9MFY24, according to the DRHP.

 

Pine Labs provides merchants with digital commerce solutions, enabling digital payments, integration with billing systems, loyalty programme management, and more.

 

The company currently has over 9.15 lakh merchant partners.

 

Other listed peers in the market include Infibeam Avenues, One97 Communications (Paytm), and MobiKwik. Another fintech major, PhonePe, has also indicated plans for a potential IPO.  Net proceeds utilisation   

Type	Net proceeds
Re-payment/Pre-payment of borrowings	Rs 870 crore
Investment in subsidiaries for international expansion	Rs 60 crore
Investment in IT assets, procurement of digital check out points, etc	Rs 760 crore

 

Source: Pine Labs DRHP