Former Peak XV Executive’s Kenro Capital Eyes Stake In IPO-Bound Pine Labs

Former Peak XV executive’s VC firm Kenro Capital is reportedly in talks to pick up a stake in Pine Labs as some of its early backers are looking for partial or full exit ahead of the company’s public listing.

A Mint report, citing people close to the matter, said that Kenro is planning to invest $30-40 Mn in the fintech major.

“The investment firm has been speaking to some of Pine Labs’ early backers to pick up a stake as the partners understand the company very well,” one of the persons told Mint.

The company fits well within their thesis of investing in those that have a clear visibility for an IPO, the person added.

Pine Labs has declined to comment on Inc42’s queries around the development.

In the run-up to its IPO, the fintech giant filed the draft red herring prospectus (DRHP) with the markets regulator SEBI last month. Pine Labs’ IPO will comprise a fresh issue of shares worth up to INR 2,600 Cr and an offer for sale of up to 14.78 Cr shares. 

The OFS will see investors Mastercard, Peak XV Partners, Macritchie Investments and Paypal cofounder Lokvir Kapoor, among others, selling their shares. 

Besides, the company is likely to consider raising INR 520 Cr in its pre-IPO round. 

Pine Labs last raised $50 Mn from Vitruvian Partners at a valuation of slightly more than $5 Bn in 2022. 

The secondary deal may have a slight discount in valuation, as it usually happens in a secondary transaction, another person told Mint. 

With the proceeds from IPO, Pine Labs is looking to primarily make repayment or prepayment of borrowing and invest rest in its IT assets as well as its subsidiaries. Notably, INR 870 Cr would be used to make repayment or prepayment of borrowing availed by the company. 

While Pine Labs plans to invest INR 760 Cr in its IT assets, expand its cloud infrastructure and procure digital checkout points, the remaining INR 60 Cr will be pumped in the company’s subsidiaries Qwikcilver Singapore, Pine Payment Solutions, Malaysia and Pine Labs UAE to bolster its presence outside India. 

Founded in 1988 by Lokvir Kapoor, Rajul Garg and Tarun Upadhyay, Pine Labs initially provided card-based payment solutions to retail petroleum industry but later pivoted to broader retail, becoming a leading point-of-sale (PoS) technology provider. 

This is not the company’s first attempt to go for IPO, it planned to list in the US, targeting a potential $1 Bn IPO in 2022. However, it deferred the plans and simultaneously began gearing up for a listing in India. 

Pine Labs began the reverse flip process in 2024, ultimately getting the NCLT nod in April 2025.

Last month, reports surfaced that the company was looking to file the draft papers for INR 5,000 Cr to INR 6,000 Cr IPO by the end of June. The IPO would likely value the company in the range of $4 Bn to $5 Bn.

Kenro Capital is a secondaries-focussed VC firm floated by Peak XV Partners’ former executive Piyush Gupta in November last year. The firm is focussed on growth-stage secondary transactions in India and Southeast Asia and aims to acquire minority stakes in companies across sectors.

The Singapore-based firm targets businesses that are profitable or nearing profitability, have achieved significant revenue scale, and are preparing for an IPO within 2-3 years.