Peak XV to offload the biggest chunk in Pine Labs IPO; PayPal, Temasek also trimming stakes

Peak XV to offload the biggest chunk in Pine Labs IPO; PayPal, Temasek also trimming stakes

Peak XV Partners, formerly known as Sequoia Capital India, is set to sell the largest portion of shares in Pine Labs’ upcoming initial public offering (IPO).

The venture capital firm, through its affiliate Pine Investment Holdings Pte. Ltd., is offering to offload up to 3.89 crore shares in the Offer for Sale (OFS), which amounts to around 26.4 percent of the total shares on offer. This marks a significant partial exit for one of Pine Labs’ earliest and most prominent backers.

The digital payments unicorn filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 26. As per the document, Pine Labs plans to raise Rs 2,600 crore through a fresh issue of shares. In addition to the primary capital raise, a group of existing shareholders, including Peak XV, Temasek, Mastercard, PayPal, and others, are collectively offering to sell up to 14.78 crore shares via the OFS route.

Temasek, through MacRitchie Investments, is offering 1.48 crore shares in the OFS, accounting for about 10 percent of the total offer. Mastercard Asia Pacific, who entered the captable back in 2020, is selling one crore shares, representing roughly 6.76 percent of the OFS.

Early backer Actis is offering 1.49 crore shares.

Meanwhile, PayPal, which had picked up a six percent stake in Pine Labs in 2018, is parting with 1.15 crore shares in the IPO.

In May 2018, PayPal and Temasek Holdings invested $125 million in Pine Labs, acquiring minority stakes in the company. This investment was part of a larger funding round for Pine Labs, which also included participation from Actis Capital and Altimeter Capital.

Other institutional shareholders participating in the offer include AIM Investment Funds (Invesco), which is selling 54.4 lakh shares, Madison India Opportunities IV, which is selling 51.1 lakh shares, and SBI-FMO Emerging Asia Fund, which is offloading 25.4 lakh shares.

Individual offer 

While the OFS is primarily led by institutional investors, Pine Labs’ CEO Amrish Rau and Executive Chairman Lokvir Kapoor are also monetising a small portion of their holdings. Rau, who owns 2.35 percent of the company, is selling up to 32.06 lakh shares. Kapoor, with a 1.97 percent stake, is offloading upto 37.64 lakh equity shares.

Chief Business Officer Kush Mehra is also participating in the OFS,  offering to sell up to 4.45 lakh shares in the IPO. This indicates that the IPO will not be an entirely institutional liquidation, as some key individual shareholders are also choosing to cash in.

Founded in 1998, Pine Labs began its journey as a Point of Sale (PoS) machine provider for offline merchants. Over the years, it has transformed into a full-stack merchant commerce platform, offering buy now pay later (BNPL) services, invoice management tools, gifting and loyalty programs, and online payment solutions through its acquisition of Fave.

The company now claims to serves more than a million merchants across India, Malaysia, and the UAE.

Pine Labs was last valued at $5 billion in a 2022 funding round. In early 2025, the company completed a redomiciliation from Singapore to India, positioning itself for a domestic listing.

The proceeds from the fresh issue will be used for repaying existing borrowings, investing in key overseas subsidiaries like Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE, as well as funding technology upgrades and other general corporate expenses.

The company has also reserved the right to undertake a Rs 520 crore pre-IPO placement, which could proportionately reduce the fresh issue size. The IPO is being managed by Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies.