Pine Labs Seeks INR 2,600 Cr via IPO, Files DRHP Papers with SEBI

According to people familiar with the situation, the fintech unicorn Pine Labs filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) on June 26.

According to a media report, the company intends to raise up to INR 2,600 crore ($304 million) through a new share offering, while current investors such as PayPal, Mastercard, Peak XV Partners, and Macritchie Investments will sell up to 14.78 crore (147.8 million) shares.

The proceeds of the new issuance will be utilised to pay down debt and make investments in companies including Pine Payment Solutions Malaysia, Pine Labs UAE, and Qwikcilver Singapore, in accordance with the DRHP.

Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies to Manage Offerings

The business might potentially think about placing shares up to INR 520 crore before the IPO. Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies are managing the offering.

This represents a significant departure from its previous discussions since last year, when Pine Labs was allegedly considering an IPO of $1 billion (INR 8,300 crore). Pine Labs, which was last valued at $5 billion when it raised money in 2022, was granted permission in April to relocate its headquarters from Singapore to India.

The platform has been branching out into other industries, such as online payments (Fave), Buy Now Pay Later (BNPL), invoice management, and gifting solutions, enabling merchants to diversify revenue sources. Its primary focus is on offline payments through Point of Sale (PoS) terminals.

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 and contract maker Zetwek hope to raise $1 billion through initial public offerings (IPOs). Up to 25 firms hope to debut on the public market in 2025.

This comprises companies that aim for $500 million initial public offerings (IPOs), such as edtech company PhysicsWallah, AI unicorn Fractal, construction materials portal Infra.market, and leader in rapid commerce Zepto.

With solid institutional support and a broad range of digital payment and issuance tools designed for India's quickly digitising commerce sector, Pine Labs' initial public offering (IPO) is anticipated to be a notable fintech listing in 2025.