India-based fintech Pine Labs has decided to file for a domestic IPO with a USD 6 billion valuation.
The company seeks to issue fresh shares worth USD 304 million, while existing investors such as Peak XV, PayPal, and Mastercard sell up to 147.8 million shares, according to draft papers filed with the market regulator. As the IPO offering could be worth USD 1 billion, the company seeks a valuation of USD 6 billion.
India’s IPO space
Although Pine Labs was last valued at USD 5 billion in 2022, it is now looking for a valuation between USD 5 billion and USD 6 billion. India’s IPO market had a slow start this year, but foreign investors are returning to local stocks after an exodus, being attracted by big-ticket block trades, which is often a sign of recovery in IPOs.
IPO proceeds from Indian issues are down 4.2% so far this year compared to 2024, while the number of issuers has fallen by 29%, according to data from LSEG. Nonetheless, the stock market is looking up as concerns about global trade ease. The benchmark Nifty 50 is up by 8%, but still remains 3% below its record highs from September 2024. Six IPOs were initiated this week, including HDB Financial's USD 1.5 billion offering, one of the biggest by an Indian non-bank lender.
Pine Labs disclosed a revenue of USD 60.8 million in fiscal year 2024, more than its USD 154.8 million in 2023. However, its losses grew from USD 6.74 million over the same period, according to its prospectus.
Earlier this year, Pine Labs planned a USD 1 billion IPO, mentioning that this will be a mix of raising new capital and some existing investors selling their stakes, declining to comment on the IPO size. It also mentioned that even if the IPO timing changes, it is still ready for the public market, a statement which holds true. If the issue goes through, it would be the second-largest fintech IPO in India after Paytm’s USD 2.5 billion listing in 2021.
Pine Labs offers full-stack payment solutions, such as POS machines, to merchants for card payments. It will use the IPO proceeds to invest in overseas units, develop technology and pare down debt.
