Pine Labs Converts Into Public Entity In Run-Up To IPO

SUMMARY

The fintech unicorn received shareholders’ nod on May 16 to change its name to ‘Pine Labs Limited’ from ‘Pine Labs Private Limited’ previously

In preparation for its IPO, Pine Labs has also appointed Amrita Gangotra and Smita Chandramani Kumar as independent directors of the company

The developments come amid reports that Pine Labs is planning to float $1 Bn IPO in the second half of 2025

In preparation for its initial public offering (IPO), fintech unicorn Pine Labs has converted into a public company.

Shareholders of Pine Labs on May 16 greenlit the proposal to change the name of the company to ‘Pine Labs Limited’ from ‘Pine Labs Private Limited’ previously, as per its regulatory filings accessed by Inc42.

The Peak XV-backed startup said in a statement that it is evaluating options for raising additional capital, including through an IPO of its equity shares. “In furtherance of this object, the company needs to be converted into a public limited company.”

In the lead up to its IPO, the board of Pine Labs also appointed Amrita Gangotra and Smita Chandramani Kumar as independent directors of the company, effective March 24, the filing showed.

The development was first reported by Entrackr.

Pine Labs Eyes 2025 Listing Amid Fintech IPO Fever

Founded in 1998 by Lokvir Kapoor, Rajul Garg and Tarun Upadhyay, Pine Labs offers a comprehensive suite of payment solutions, including point-of-sale terminals and online payment gateways, catering to over 5 Lakh merchants across India, the Middle East and Southeast Asia. It also offers gifting solutions through Qwikcilver, Pine Perks and Google Wallet.

The fintech startup joined the unicorn club in 2020 after raising an undisclosed sum from US-based payments major MasterCard. Overall, it has raised $1.6 Bn in total funding till date and also counts PayPal, Alpha Wave Global, 360 One Asset and Invesco among its investors.

Its transition to a public company comes days after it secured final approval from the National Company Law Tribunal (NCLT) to relocate its domicile to India through a reverse merger. Last month, Pine Labs merged its entities in India and Singapore.

As per reports, Pine Labs is planning to float a $1 Bn IPO in the second half of 2025. The public issue will likely be a mix of a fresh issue component and an offer for sale. If Pine Labs’ public listing plans fructify, it will be the second largest IPO by a fintech company in the country after Paytm’s $2.5 Bn IPO in 2021.

Pine Labs is said to be eyeing a valuation of $6-8 Bn for its upcoming IPO. In the run-up to its IPO, the company elevated CEO Amrish Rau to the position of managing director and chairman last month.

Although Pine Labs is ramping up preparations for its mega IPO, it continues to be a loss-making company. The fintech startup reported a net loss of INR 187 Cr in FY24, a more than 3X jump from the INR 56 Cr loss it incurred in FY23.

Operating revenue increased a modest 3% to INR 1,317 Cr during the year under review from 1,281 Cr in FY23.

Pine Labs has joined the likes of fintech giants Razorpay and PhonePe, which recently transformed into public companies ahead of their potential IPOs.

While PhonePe and Groww have already relocated their headquarters back to India, Razorpay is in the process of moving its domicile to India. Dutch technology investor Prosus is also planning to take its digital payments arm PayU public this year.

Several lending tech startups, including Sachin Bansal-led Navi, Moneyview, Kissht and KreditBee are also said to be eyeing an IPO in the immediate future despite the prevailing market uncertainties.