In June, Pine Labs submitted the draft documents for its public listing worth INR 2,600 Cr to the market regulator SEBI. Its supporters, which include Mastercard, Peak XV Partners, Macritchie Investments, Paypal, and cofounder Lokvir Kapoor, are expected to divest their stakes during this IPO.
As the company awaits SEBI’s approval, it is contemplating a pre-IPO round of INR 520 Cr. It is worth mentioning that Kenro Capital, a venture capital firm run by a former Peak XV executive, is interested in acquiring a stake in the fintech company preparing for an IPO.
Pine Labs’ last funding round in 2022 involved a $50 million investment from private equity firm Vitruvian Partners, with the company’s valuation being just over $5 billion.
The firm intends to use INR 870 Cr from its IPO funds for repaying or prepaying loans. Additionally, it aims to invest INR 760 Cr in its IT assets, enhance its cloud infrastructure, and acquire digital checkout points.
Pine Labs, established in 1988 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, initially provided card-based payment solutions for the retail petroleum industry. It later broadened its focus to encompass the wider retail sector and became a leading provider of point-of-sale (PoS) technology.
Pine Labs achieved profitability in the first three quarters of FY25 (9M FY25). The entity recorded a net profit of INR 26.1 Cr during the reviewed period, in contrast to a loss of INR 151.6 Cr for the same period in the previous fiscal year.
