Pine Labs Receives Three Key RBI Payment Licences Ahead Of IPO

Pine Labs IPO: Issue Subscribed 39% On Day 2 So Far

SUMMARY

Pine Labs has secured all three key payment licences from the Reserve Bank of India (RBI), allowing it to operate across the full range of digital payment services in the country

These licences will enable Pine Labs to process domestic and international payments, manage settlements and expand its merchant network across both online and offline channels

The regulatory nod comes shortly after the fintech major closed its initial public offering (IPO) with an oversubscription of 2.46X. The issue received bids for 24.09 Cr shares against 9.78 Cr shares on offer

IPO-bound fintech major Pine Labs has secured all three key payment licences from the Reserve Bank of India (RBI), allowing it to operate across the full range of digital payment services in the country.

As per an ET report, the company has received approvals for payment aggregator, payment gateway, and cross-border payment operations from the RBI.

For context, a payment aggregator license allows a company to collect payments from customers on behalf of merchants. With a payment gateway license, fintechs can provide tech platforms to other companies to facilitate payments.

Meanwhile, cross-border payment licenses help businesses to facilitate international inward or outward remittances for their customers.

These licences will enable Pine Labs to process domestic and international payments, manage settlements and expand its merchant network across both online and offline channels. Taking to social media platform LinkedIn, Pine Labs’ CEO Amrish Rau claimed that Pine Labs became the first company to attain all three licences from the apex bank.

Pine Labs had set a price band of INR 210–INR 221 per share, with the IPO comprising a fresh issue of up to INR 2,080 Cr and an offer-for-sale (OFS) of up to 8.23 Cr shares. Existing investors Peak XV Partners, Temasek, PayPal, and Mastercard are among those selling part of their stakes through the OFS.

At the upper end of the price band, the total IPO size stands at around INR 3,900 Cr, valuing the company at INR 25,377 Cr (about $2.8 Bn). The shares are expected to list on the bourses on November 14.

Pine Labs said the proceeds from the IPO will be used to repay or prepay borrowings, invest in overseas subsidiaries, and strengthen its tech infrastructure.

On the financial front, Pine Labs turned profitable in Q1 FY26, posting a net profit of INR 4.8 Cr, a turnaround from a loss of INR 27.9 Cr in Q1 FY25, helped by a one-time tax credit of INR 9.6 Cr. Operating revenue zoomed 18% YoY to INR 615.9 Cr during the quarter.

In FY25, the company’s net loss narrowed 57% YoY to INR 145.4 Cr, while operating revenue grew 28% to INR 2,274.3 Cr.