Pine Labs Set to Launch $1 Billion IPO in India
Fintech giant Pine Labs, with backing from Peak XV Partners and Mastercard Inc, is reportedly gearing up for a massive $1 billion initial public offering (IPO) in India. The move follows the company’s approval from a Singapore court to relocate its headquarters to India by merging its Singapore and Indian entities.
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Industry insiders suggest that Pine Labs could target a valuation exceeding $6 billion in its IPO. The company may decide to issue a combination of new and secondary shares and could potentially conduct a pre-IPO fundraising round before going public. This significant development was initially reported by Bloomberg, although Pine Labs has refrained from commenting on the matter.
If the $1 billion IPO materializes, it would mark one of the largest offerings by an Indian fintech firm since Paytm operator One97 Communications raised approximately $2.5 billion in 2021, as per Bloomberg data.
Previously, Pine Labs had confidentially filed for an IPO with the US Securities and Exchange Commission in New York in 2022. Sources indicated that the listing could have valued Pine Labs between $5.5 billion and $7 billion.
Pine Labs operates as a prominent merchant commerce omnichannel platform across India, West Asia, and Southeast Asia. Its digital payments segment, including the Cloud-based software Plural, serves as a comprehensive payment solution for various channels. Additionally, its issuing business, powered by Qwikcilver, specializes in end-to-end technology services for pre-paid transaction management, gift cards, and sales and distribution.
In the consumer apps domain, Pine Labs offers Fave, a fintech platform that enables smart payments and savings for consumers while equipping merchants with a loyalty solution to enhance customer engagement.
In 2022, Pine Labs secured a $150 million investment from Alpha Wave, valuing the company at around $5 billion. Despite initial plans for an overseas IPO, market volatility led to a postponement of the offering.
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Pine Labs is part of a growing trend among startups looking to relocate or perform reverse flips to India. Several Indian startups domiciled abroad, including PhonePe and Groww, are exploring the possibility of shifting their base or performing a reverse flip to India, spanning sectors like fintech, e-commerce, stock broking, health care, and edtech.
