Fintech Major Pine Labs Eyeing A $1 Bn IPO In India

SUMMARY

Pine Labs is likely to seek a valuation of over $6 Bn for its IPO

This is the fintech unicorn’s second attempt at a public listing. Earlier, it filed IPO documents with the US SEC but didn’t go ahead with the public listing plans

Like many other Indian startups, Pine Labs is also currently in the process of shifting its base to India

With its reverse flipping plans in full motion, fintech unicorn Pine Labs is now reportedly eyeing an initial public offering (IPO) of $1 Bn (about INR 8,300 Cr) in India.

Citing sources, a Bloomberg report said that the company is likely to seek a valuation of over $6 Bn for the IPO.

The fintech major may opt for a pre-IPO funding round before the IPO, the report said, adding that the size and valuations may change as no final decision has been taken yet.

Inc42 has reached out to Pine Labs seeking its comments on the development. The story will be updated on receiving a response.

This is the second stab by the point of sale (PoS) and merchant commerce solutions provider at a public listing. In 2022, Pine Labs filed its IPO documents with the US Securities and Exchange Commission for a $500 Mn public issue. However, it deferred the IPO plans due to weak market sentiments.

The latest development comes at a time when Pine Labs has seen a couple of upwards revisions in its valuation. Earlier this year, Baron Capital increased the unicorn’s valuation to $5.8 Bn and Invesco bumped it up to $4.8 Bn.

Like many other Indian startups, Pine Labs is also currently in the process of shifting its base to India with an eye on listing on the Indian exchanges. Last month, the company got the approval from a Singapore court to merge its Singapore-based entity Pine Labs Limited (PLS) with the India entity Pine Labs Private Limited (PLI).

Now, it is awaiting the go ahead from the National Company Law Tribunal (NCLT).

Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs provides a number of payment solutions like point of sales devices and payment systems to businesses. It also offers other solutions like pay later and rewards and cashback to businesses.

The company has raised a total funding of about $1.6 Bn till date from investors like Peak XV Partners, Actis Capital, Temasek, PayPal, Mastercard, Alpha Wave Global, Chimera Capital, and State Bank of India.

Pine Labs reported a net loss of INR 56.2 Cr in the financial year 2022-23 (FY23), more than double of INR 22.6 Cr in the previous fiscal year. Operating revenue grew 37% to INR 1,280.5 Cr during the year under review from INR 932.3 Cr in FY22.