Pine Labs files IPO papers with SEBI to raise Rs 2,600 crore primary capital

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Fintech unicorn Pine Labs has submitted its Draft Red Herring Prospectus (DRHP) to the Securities and Exchange Board of India (SEBI) on June 26, according to sources familiar with the matter.

The company plans to raise up to Rs 2,600 crore ($304 million) through a fresh issue of shares, while existing investors, including PayPal, Mastercard, Peak XV Partners, and Macritchie Investments, will offload up to 14.78 crore (147.8 million) shares, per Bloomberg report.

As per the DRHP, the proceeds from the fresh issue will be used to repay debt and invest in subsidiaries such as Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE.

The company may also consider a pre-IPO placement of shares worth up to Rs 520 crore. The offering is being managed by Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies.

This marks a sharp pivot from its earlier deliberations since last year, when Pine Labs was reportedly weighing a $1 billion (Rs 8,300 crore) IPO.

Last valued at $5 billion when it raised funds in 2022, Pine Labs received approval to move its domicile from Singapore to India in April.

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The platform, which is predominantly focused on offline payments via Point of Sales (PoS) terminals, has been venturing into other businesses, including online payments (Fave), Buy Now Pay Later (BNPL), invoice management, and gifting solutions for merchants to diversify revenue streams.

*Currency conversions to Indian rupees have been done at an approximate exchange rate of Rs 82.8 per US dollar