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Pine Labs’ Singapore Parent Converts Into Public Company Ahead Of IPO

Pine Labs’ Singapore Parent Converts Into Public Company Ahead Of IPO

The point of sale (PoS) and merchant commerce solution provider is eyeing for $5 Bn valuation with the IPO

In July, Pine Labs raised $600 Mn from Fidelity Management & Research Company, BlackRock and others

Pine Labs was the first Indian startup to have entered the unicorn club in 2020

Indian digital payments unicorn Pine Labs has converted into a public company, a mandatory step required for a startup to do before it files for an initial public offering (IPO). The fintech company’s parent – Pine Labs Pte – which is based in Singapore has converted into Pine Labs Limited. 

As per media reports, the merchant commerce platform is likely to list itself in the US next year. However, with its conversion into a public company, the fintech player might look at early listing. Earlier reports have suggested that Pine Labs eyeing for $5 Bn valuation with the IPO. 

Pine Labs have now joined the bandwagon of Indian startups such as hospitality giant OYO, cab aggregator Ola, and edtech giant BYJU’s who are likely to try their fate in the public market early next year. Vijay Shekhar Sharma-led Paytm and digital payments platform Mobikik are two other startups that have already filed their DRHP and are likely to list on the Bombay Stock Exchange (BSE) later this year. 

The startup in July closed $600 Mn from Fidelity Management & Research Company, BlackRock, Ishana, IIFL, Kotak along with a fund advised by Neuberger Berman Investment Advisers. The round valued the startup at $3 Bn, up from $2 Bn in December last year. In May, it closed $285 Mn from Baron Capital Group, Duro Capital, Marshall Wace, Moore Strategic Ventures and Ward Ferry Management financed. Existing investors Temasek, Lone Pine Capital and Sunley House Capital also participated in the round. 

Pine Labs was the first startup to have entered the unicorn club in 2020 after it raised an undisclosed amount from US-based financial services major Mastercard.  

Founded in 1998 by Lokvir Kapoor, Pine Labs enables businesses to accept online and offline digital retail transactions. The startup claims that its cloud-based platform helps over 140,000 merchants, 3.5 lakh PoS (point of sale) terminals across 3,700 cities and towns in India and Malaysia. About 15 major banks, seven financial institutions and more than 100 brands are a part of Pine Lab’s platform that processes payments worth $30 Bn every year

In FY20, the startup posted a revenue of INR 701.62 Cr, an incremental rise of 43% from INR 491.29 Cr it posted in FY19. However, its net loss widened to INR 57.72 Cr in FY20, a 1,654% rise from INR 3.29 Cr. Pine Labs saw its expenses rise to INR 765.61 Cr in FY 20, as against INR 490.86 Cr in FY 19. Pine Labs is yet to file its financial statements for FY21. 

The development was first reported by Entrackr.

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