Pine Labs Selects Five Banks As IPO Plans Get Finalised

Nitin Konde, Varun Bhardwaj

Nov 27, 2024 — 2 min read

Pine Labs Finalizes IPO Plans, Selects Five Banks

The fintech giant has reportedly chosen five investment banks to serve as advisors for its $1 billion (about INR 8,424.7 crore) initial public offering (IPO), months after it was revealed that Pine Labs has been considering going public. According to a media report, which cited people familiar with the situation, Pine Labs has selected Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies to manage its initial public offering (IPO) mandate, which is scheduled to launch in the first half of FY26.

According to the report, as part of the pre-IPO investment, a secondary offer worth $100 million (about INR 842.5 crore) will be made possible, allowing share transfers between new venture capital companies and current investors. The company is expected to seek a valuation of over $6 billion for the initial public offering (IPO), according to reports that first surfaced in June about its plans to go public.

Business Dynamics of Pine Labs

Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs offers a variety of payment solutions to businesses, such as point-of-sale devices and payment systems. Additionally, it provides businesses with cashback, rewards, and pay-later options. Investors including Peak XV Partners, Actis Capital, Temasek, PayPal, Mastercard, Alpha Wave Global, Chimaera Capital, and State Bank of India have contributed a total of around $1.6 billion to the fintech company's investment to date.

In August, Pine Labs obtained the first set of licences from the National Company Law Tribunal (NCLT) to combine its Singapore business with its Indian subsidiary, one of several steps the fintech startup took to move its headquarters to India.

IPO Scenario in India

Aforementioned development occurs at a time when at least ten companies are making their debut this year, and entrepreneurs from a variety of industries are eager to get on the exchanges. In the meantime, a long line of startups is expected to go public next year.

Axis Capital, Morgan Stanley, JP Morgan, Citigroup, and Bank of America are among the five banks that have joined SoftBank-backed B2B marketplace OfBusiness for its $1 billion initial public offering (IPO), which is anticipated to take place next year. About two weeks ago, the manufacturer of smartwatches and audio goods, boAt, hired ICICI Securities, Goldman Sachs, and Nomura as bankers for its $300–500 million initial public offering (IPO) that will take place next year.

With initial public offerings (IPOs) emerging as a crucial means of obtaining funding, the Indian startup scene is undergoing a significant transformation. For the second time in history, mainboard initial public offerings (IPOs) have raised more than INR 1 lakh crore in 2024. Over INR 1.03 lakh billion has been raised through 70 initial public offerings (IPOs) this year, the most since 2007. In contrast, 63 firms raised more than INR 1.19 lakh crore through IPOs in 2021, compared to 100 IPOs that were launched in 2007 and raised INR 34,179 crore.