Newsletter
Pine Labs is heading to the public markets with a ₹2,600 crore fresh issue and an offer for sale of 14.78 crore shares.
Founded in 1998, it has evolved from a card-based payment solution into a full-stack merchant commerce platform. Today, it serves over 9 lakh merchants across India, Southeast Asia, and the Middle East, offering POS devices, BNPL, loyalty programs, and embedded financing.
Now, with debt on the rise and expansion plans underway, the IPO comes at a turning point.
IPO Details:
Objective:
The fresh capital will go toward reducing debt, funding global subsidiaries, upgrading cloud infrastructure, and supporting tech development. A portion is also set aside for future acquisitions.
About the company:
Pine Labs operates a cloud-based merchant commerce platform that offers payment acceptance tools, digital checkout, consumer financing (BNPL), and value-added services.
Its core offerings include smart POS terminals that accept UPI, cards, wallets, and EMI payments, as well as APIs for e-commerce payments.
Pine Labs also provides loyalty, rewards, and gift card infrastructure through its subsidiary Qwikcilver, and offers working capital solutions to merchants via NBFC partnerships.
Its customer base includes top consumer brands like Amazon Pay, LG, and Flipkart, and large banks such as HDFC Bank, ICICI Bank, and Axis Bank.
Financial performance
Pine Labs has grown revenues steadily over FY22–FY24, with topline reaching ₹1,382 crore in FY24 and ₹1,274 crore in the nine months ending December 2024.
While it was loss-making in FY23 (₹187 crore loss), it turned profitable in the current fiscal, reporting a PAT of ₹26 crore for the nine-month period.
EBITDA margin was 13.2% as of FY24. However, return on net worth remained negative at -9.18%, largely due to accumulated losses and equity base from earlier rounds.
Borrowings rose to ₹614 crore by Dec 2024, making debt repayment a key IPO objective
Promoters and investors
Pine Labs has no identifiable promoter group. It is a professionally managed company with deep institutional backing.
Key investors include Sequoia Capital, Temasek, PayPal, Mastercard, Actis, and Madison India.
The offer for sale includes up to 14.78 crore shares, but the DRHP does not specify how much each investor plans to offload.
These secondary transactions will reduce the combined stake of early investors and employees, with post-listing shareholding yet to be detailed.
The IPO funds will be used for…
Out of the ₹2,600 crore fresh issue:
- ₹870 crore is earmarked for repaying certain borrowings at Pine Labs and its subsidiaries.
- ₹60 crore will go towards global expansion, including investments in Singapore, Malaysia, and the UAE units.
- ₹760 crore is allocated for IT infra, cloud upgrades, and development of DCPs (Digital Checkout Platforms).
The remainder will support general corporate purposes and potential inorganic growth.
Risk factors
Pine Labs operates in a highly competitive market, facing pressure from Razorpay, Paytm, PhonePe, and international players in the payments space.
The company’s profitability track record is limited, and future margins will depend on maintaining scale and cost control.
It also relies on large banks and NBFCs for merchant financing, making it vulnerable to partner shifts or regulatory changes.
With a growing international presence, Pine Labs is also exposed to cross-border compliance and tech risks in multiple geographies.
Final take
Pine Labs has built a strong digital payments infrastructure and embedded itself deeply into India’s merchant ecosystem.
The IPO is a blend of growth capital and investor exit, but the story ahead will depend on sustained profitability, market share defense, and monetization of its platform layers.
If executed well, Pine Labs could join the ranks of India's top listed fintech platforms but investors should watch closely for earnings stability and international scaling before assigning premium valuations.
FAQs
What does Pine Labs do?
Pine Labs is a merchant commerce platform that provides smart POS terminals, digital payments infrastructure, BNPL solutions, loyalty and rewards services, and embedded merchant financing.
Is Pine Labs profitable?
Yes, Pine Labs reported a net profit of ₹26 crore for the nine months ended December 2024. However, it had incurred a loss of ₹187 crore in FY24.
What is the size of the Pine Labs IPO?
The IPO comprises a fresh issue of ₹2,600 crore and an offer for sale of 14.78 crore equity shares by existing shareholders.
How will Pine Labs use the IPO proceeds?
The funds will be used for debt repayment, overseas expansion, cloud and tech infrastructure upgrades, and future acquisitions.
Who are the investors in Pine Labs?
Key institutional investors include Sequoia Capital, Temasek, Mastercard, PayPal, Actis, and Madison India. The company has no promoters.
What is Pine Labs’ revenue and profit trend?
Revenue grew to ₹1,382 crore in FY24. The company turned profitable in 9M FY25 with ₹26 crore in PAT, after incurring losses in FY23 and FY24.
In which countries does Pine Labs operate?
Pine Labs operates in India, Malaysia, Singapore, and the UAE, serving over 9.15 lakh merchants as of December 2024.
What is the biggest risk in investing in Pine Labs?
Key risks include intense competition, margin volatility, limited profit history, reliance on third-party banks/NBFCs, and cross-border regulatory compliance.
What is Pine Labs' EBITDA margin?
As of FY24, the company reported an EBITDA margin of 13.2%, with improvements noted in the current fiscal.
Is Pine Labs a promoter-led company?
No, Pine Labs is a professionally managed company without a defined promoter group, as per its DRHP filing.
