Pine Labs Awaits India Nod For Reverse Flip After Singapore Approval

Fintech unicorn Pine Labs is now all set to shift its domicile back to India after reportedly receiving an approval from a Singapore court to merge its Singapore-based entity with the India entity. 

The court order, not seen by Inc42, allows Singapore-based Pine Labs Limited (PLS) to merge with its Indian counterpart Pine Labs Private Limited (PLI).  PLS will be transferring all its assets and properties to the Indian entity, effectively permitting the firm to shift its operations to India. 

The development was first reported by TechCrunch. Peak XV Partners-backed Pine Labs has declined to comment on Inc42’s queries regarding the development. 

While the company has received the green light in Singapore, Pine Labs’ plea in India is still being heard by the National Company Law Tribunal. 

The plea was listed at the NCLT’s Chandigarh Bench under Section 230-232, 234 of Companies Act, 2013 on February 29. The matter has seen no headway over five successive hearings. As of now, the matter is adjourned till  May 31, 2024, after the last hearing on May 17. 

Earlier this year, the company was reported to have sought board approval to move its parent company from Singapore to India. At that time, Pine Labs was said to be eyeing moving its domicile to India by the end of 2024. 

Pine Labs will look to become the third fintech major after Phonepe and Groww to shift base to India. A number of other startups like Zepto, Razorpay, and Flipkart, are also looking to reverse flip.

In most cases, the motivation for reverse flipping is to pursue an initial public offering (IPO) in the Indian market, which has shown great appetite for Indian startup IPOs. 

TBO Tek’s premium listing, Go Digit’s highly-subscribed IPO in May 2024 are two recent examples of why startups are once again flocking for public listings after a lull from 2022. 

Incidentally, Pine Labs initiated the IPO process by converting its Singapore-based parent to a public limited company back in September 2021. 

The company was eyeing a $1 Bn IPO in the US back in 2022. However, it subsequently deferred its IPO plans the next year, citing ‘weak market sentiments. 

The startup’s reverse flipping plans are heating up amid widening losses. While its consolidated net loss more than doubled to INR 56.2 Cr in the financial year 2022-23 (FY23) from INR 22.6 Cr, its operating revenue also grew 37% to INR 1,280.5 Cr during the year under review from FY22’s INR 932.3 Cr.