IPO Watch: Fintech Firm Pine Labs Files Draft Papers with SEBI to Raise Funds via IPO: Report

In a significant development within India’s fintech space, Pine Labs, one of the country’s leading digital payment and merchant commerce platforms, has reportedly filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), setting the stage for a much-anticipated Initial Public Offering (IPO). This move marks Pine Labs’ latest effort to tap into the public capital markets and expand its operations amid a growing demand for cashless payment solutions.

Fintech Giant Sets IPO Plan in Motion

According to reports from financial dailies citing sources familiar with the matter, Pine Labs aims to raise funds in the range of ₹1,000–₹1,300 crore through a combination of fresh equity issue and offer for sale (OFS) by existing investors. The IPO is likely to offer partial exits to shareholders such as Sequoia Capital, Temasek, and PayPal, all of whom have played a crucial role in the company’s growth over the years.

Founded in 1998 and headquartered in Noida, Pine Labs has evolved from a smart card-based payments and loyalty solutions provider into a prominent player in point-of-sale (PoS) terminals, buy now, pay later (BNPL) offerings, and merchant commerce tools. The company caters to over 350,000 merchants across India, Southeast Asia, and the Middle East.

A Long-Awaited Market Debut

Pine Labs had previously filed for a U.S. listing in 2022 but later put its international IPO plans on hold, citing volatile market conditions and a greater focus on India’s expanding fintech ecosystem. The firm had also explored the possibility of a dual listing in both India and the U.S., but the current DRHP indicates a domestic-first strategy.

“India’s fintech space has matured rapidly in the last few years, and it makes strategic sense for Pine Labs to debut locally,” said Rashi Bansal, senior equity strategist at Anand Rathi Financial Services. “Given the brand visibility and merchant integration, this IPO could receive strong interest, especially from tech-savvy retail investors and institutional players looking to diversify into digital financial services.”

Strong Financial Backing and Growth Trajectory

Pine Labs has raised over $1.2 billion in private capital to date, from marquee investors including Mastercard, Actis, and SBI Investment, placing its last private valuation at nearly $5 billion. The company’s core strength lies in enabling seamless digital payments and affordable lending products at the retail level, which have seen a surge in adoption post-pandemic.

According to the DRHP insights leaked in the media, Pine Labs reported over ₹1,000 crore in revenue in FY23, representing a growth rate of 35% YoY, while narrowing its losses significantly. The company’s BNPL arm, QwikCilver, has contributed notably to its top-line numbers.

Industry Context: A Favorable Time for Tech IPOs?

India’s IPO market has shown renewed enthusiasm in 2024–2025, with successful listings from companies like Tata Technologies, FirstCry, and Go Digit rekindling investor confidence. Market observers believe this momentum is likely to benefit Pine Labs, especially given its robust digital infrastructure, recurring revenue streams, and cross-border expansion capabilities.

“What differentiates Pine Labs is its hybrid fintech model — it serves both physical and digital merchants and offers financial services on top of transactions,” noted Vikram Shetty, partner at a Mumbai-based PE firm. “This IPO will be a bellwether for upcoming fintech listings in India.”

IPO Details Await SEBI Nod

While the exact pricing and timeline are yet to be officially disclosed, market speculation points to a launch in late Q3 or early Q4 of FY2025, subject to regulatory approvals. Merchant bankers involved in the process reportedly include Morgan Stanley, Kotak Mahindra Capital, and ICICI Securities, among others.

The funds raised will be primarily used for technology upgrades, expansion into new geographies, and product innovation, according to initial reports. The company also plans to deepen its BNPL footprint and build further integrations with e-commerce and UPI-linked platforms.

Investor Outlook: Valuation and Volatility

While Pine Labs is undeniably a top-tier fintech brand, analysts caution that valuation sensitivity and profitability metrics will be under investor scrutiny, especially in light of past experiences with tech IPOs like Paytm and Zomato.

“Investors will look beyond the buzz and dive deep into unit economics,” said Ankit Mehra, an independent market analyst. “But Pine Labs’ merchant-first strategy, tech stack, and pan-Asia presence give it a stronger case than many pre-profit tech peers.”

Retail investors are also advised to weigh the risks, given the intensifying competition from PhonePe, Razorpay, and Mswipe, as well as global players eyeing the Indian payment landscape.

As Pine Labs awaits SEBI's green light, the fintech community and equity markets will closely monitor developments. The IPO represents more than a fundraising event — it's a potential milestone for India’s maturing fintech sector and could set the tone for future digital-first listings.

With a strong brand, expanding merchant network, and growing demand for alternative credit solutions, Pine Labs is positioning itself at the forefront of India's digital payments revolution. However, the final success will depend on market conditions, investor appetite, and the valuation math.