Indian fintech company Pine Labs has secured approval from the Securities and Exchange Board of India (SEBI) to move forward with its long-awaited initial public offering (IPO). The Noida-based firm filed its draft red herring prospectus (DRHP) in late June and received SEBI’s observations on September 11, effectively granting it a regulatory green light to proceed. The offering will include a fresh issue of shares worth up to ₹2,600 crore ($304 million) along with an offer for sale of nearly 14.78 crore shares by existing investors.
Several major shareholders will participate in the offer for sale, including Peak XV Partners, Temasek’s Macritchie Investments, Actis, PayPal, Mastercard, Invesco, Madison India Capital, Lightspeed Venture Partners, MW XO Digital Finance, and Lone Cascade, an affiliate of Lone Pine Capital. Pine Labs co-founder Lokvir Kapoor will also divest part of his holdings. Peak XV is expected to sell up to 39 million shares, reducing its 20.35% stake by approximately 3.6%. Actis and Temasek are likely to trim their holdings by around 1.4% each.
In addition, the company has set aside the possibility of a pre-IPO placement of up to ₹520 crore, subject to board and regulatory approvals. Should this option be exercised, the size of the fresh issue will be adjusted accordingly.
The company plans to utilize proceeds from the new share sale for multiple purposes, including repayment or prepayment of borrowings amounting to ₹870 crore, investments in international subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE, as well as strengthening cloud infrastructure, scaling digital checkout offerings, enhancing IT assets, and meeting general corporate requirements.
Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs has transformed from a card-based payments company into a comprehensive merchant commerce platform. Its product suite now includes point-of-sale terminals, online payment gateways, and integrated digital solutions across India, Southeast Asia, and the Middle East.
The IPO will be managed by a syndicate of global investment banks, including Axis Capital, Morgan Stanley India, Citigroup Global Markets India, J.P. Morgan India, and Jefferies India, serving as book-running lead managers.
Financially, Pine Labs has returned to profitability ahead of its public debut. The company reported a net profit of ₹44.97 crore in FY25, a turnaround from a ₹182.31 crore loss the previous year. Revenue grew 25.5% year-on-year to ₹1,735.1 crore, while expenses rose just 3.3% to ₹1,676.8 crore. For the first nine months of FY25, it posted a profit of ₹26.1 crore compared with a loss of ₹151.6 crore in the same period a year earlier.
While official listing dates remain unannounced, CEO Amrish Rau has previously indicated that Pine Labs is targeting a debut in the second half of 2025.
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