Pine Labs Receives Final NCLT Approval to Reverse Flip to India

Fintech giant Pine Labs has now obtained the National Company Law Tribunal's (NCLT) final approval to combine its Singaporean and Indian businesses, marking another step forward in its reverse flipping journey. Consequently, current shareholders of the Singaporean company will receive shares in Pine Labs. According to a corporate spokeswoman, the alignment supports the company's long-term goal of providing value to stakeholders, partners, and customers while also aiming to improve operational efficiency. This occurs months after Pine Labs was given preliminary NCLT approval in August to move its headquarters from Singapore to India.

Move is Aligned to Prepare for IPO

Pine Labs' intentions to change its domicile are consistent with its prospective $1 billion IPO aspirations. Additionally, it has already selected five bankers for its initial public offering (IPO), including Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies. The company appears to be far from reaching profitability, even though its initial public offering (IPO) is quickly approaching. Its net loss increased from INR 56 Cr in the prior fiscal year to INR 187 Cr in FY24. However, compared to INR 1,281 Cr in the prior fiscal year, its operational revenue in FY24 was INR 1,317 Cr. Pine Labs is making its second attempt to go public. Due to adverse market conditions, its initial aspirations to list on US markets were postponed.

About Pine Labs

Pine Labs, which was founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, provides complete payment solutions. The services of Pine Labs include online payment gateways and point-of-sale terminals. Currently, it has more than 5 lakh merchants in Southeast Asia, the Middle East, and India. The company's sponsors include Temasek, PayPal, Mastercard, and Peak XV Partners. Among its rivals are Paytm, PhonePe, RazorPay, and others. After Paytm's $2.5 billion listing in 2021, Pine Labs' IPO will be the biggest by an Indian fintech business if it is successful.

IPO Getting More Popular Among Startup Sector

Due to a robust IPO market and a resurgence of investor interest in tech equities, a number of technology businesses intend to go public in 2025. Lenskart, an eyeglasses startup, has contacted investment banks to present for the mandate for its possible initial public offering (IPO), which may raise $1 billion. Groww, a stock broker, had selected five investment banks for a $1 billion initial public offering. In the near future, startups like SoftBank-backed OfBusiness, contract maker Zetwek, and financial unicorn Pine Labs hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.