MC EXCLUSIVE Fintech player Pine Labs kicks off international roadshows, targets IPO launch after Diwali

Amrish Rau, CEO, Pine Labs

Payments services provider Pine Labs recently kicked off international roadshows, concluding investor outreach in Asia last week and embarking on London roadshows this week ahead of the proposed IPO, people aware of the fintech company’s plans told Moneycontrol on condition of anonymity.

The fintech player is currently contemplating a post-Diwali window to launch the public issue, targetting late October or early November for the share sale offer, sources said, adding that the final dates will be contingent to regulator Sebi’s approval and prevailing market conditions.

An email sent to Pine Labs did not elicit a response till the time of publication.

IPO Breakdown

The Pine Labs initial public offering comprises a fresh issue of equity shares worth up to Rs 2,600 crore and an offer for sale of up to 147.82 million shares by existing investors.

Key selling shareholders in the offer for sale include Peak XV Partners, Actis, Temasek, PayPal, Mastercard Asia/Pacific, Invesco, Madison India, among others.

The IPO is being managed by a consortium of investment banks including Axis Capital, Morgan Stanley, Citigroup, JP Morgan and Jefferies as book running lead managers.

Proceeds from the fresh issue will be used to strengthen Pine Labs’ technology infrastructure, repay or prepay borrowings, pursue strategic acquisitions, scale up digital payments and merchant solutions along with plans for the international markets.

Pine Labs intends to spend Rs 870 crore for repayment and prepayment of borrowing, Rs 760 crore for investment in technology and infrastructure, Rs 60 crore for investment in subsidiaries, and the rest for general corporate purposes.

Pine Labs' Business

Pine Labs is a merchant commerce and digital payments platform offering an integrated suite of issuing, acquiring and processing services across in-store and online channels.

The business model centers on enabling merchants, brands, enterprises and financial institutions to accept payments, issue prepaid instruments, and access value-added services that drive consumer engagement and loyalty. The company offers a full-stack ecosystem to combine payment acceptance, gift card issuance, distribution solutions, affordability offerings such as Buy Now Pay Later (BNPL) and merchant-facing software tools.

On the issuing side, Pine Labs provides closed-loop, semi-closed, and open-loop prepaid instruments, including gift cards, loyalty cards, and brand wallets. It has cumulatively issued more than 3.2 billion prepaid cards as of December 31, 2024.

The company has processed payments of Rs 7.53 trillion in gross transaction value and 3.97 billion transactions through its platforms in the nine months period ending December 31, 2024. As of December 31, Pine Labs had 915,731 merchants, 666 consumer brands and enterprises, and 164 financial institutions.

For the first nine months of FY25, Pine Labs reported a revenue of Rs 1,208 crore compared to Rs 1,341 crore for the full-year FY24.

Pine Labs reported a profit of Rs 26.1 crore in the nine months ending December 31, 2024, as against a loss of Rs 187.1 crore in FY24.