Pine Labs inches into profit in 9M FY25 ahead of IPO, steadies base for global push

Mumbai, June 27, 2025 — Pine Labs, the merchant commerce platform backed by marquee investors like Sequoia Capital and Mastercard, has posted a profit in the first nine months of FY25, signaling a turnaround ahead of its much-anticipated IPO. This milestone marks the company’s transition from a high-burn startup to a profitable fintech player with global aspirations.

The firm reported a net profit of ₹38 crore for the nine-month period ending December 2024, compared to a loss of ₹62 crore in the same period last fiscal. Revenue from operations surged 38% year-on-year to ₹1,195 crore, led by robust performance in its point-of-sale (PoS) terminal business and digital payments solutions.

IPO Momentum Builds as Company Strengthens Financials

The improvement in financials comes at a critical juncture. Pine Labs is widely expected to file its draft red herring prospectus (DRHP) for an IPO in the latter half of 2025. Sources close to the company suggest the firm is targeting a valuation of $5–6 billion, buoyed by its operational efficiencies and improved margins.

“Pine Labs has been laser-focused on profitability, streamlining its cost structures and enhancing operational productivity,” said Rajeev Mehta, Senior Analyst at Bernstein India. “Their positive cash flow and profit milestone in 9M FY25 significantly derisks the IPO story.”

Digital Payments and BNPL Driving Growth

The company’s digital payments business, which includes QR-based UPI transactions, subscription billing, and tokenization services, contributed nearly 60% of total revenue. The remaining share came from its cloud-based PoS terminals, deployed across Southeast Asia and India.

Its Buy Now, Pay Later (BNPL) product, deployed across 250,000 merchant outlets, also witnessed 22% year-on-year growth in transaction volume. Pine Labs has partnered with over 30 banks and NBFCs to power these credit offerings.

“Unlike early-stage fintechs chasing growth at any cost, Pine Labs has matured into a full-stack commerce platform with a clear monetization roadmap,” said Neha Agarwal, Vice President at Avendus Capital.

Global Expansion Plans in Focus

Pine Labs is expected to use the IPO proceeds to fund its global expansion, particularly in Southeast Asia and the Middle East. The company has already established a strong footprint in Malaysia, Singapore, and the UAE, and is exploring acquisition opportunities to fast-track market penetration.

In March 2025, Pine Labs acquired a 51% stake in Dubai-based fintech PayWorld, enabling access to over 45,000 retail merchants in the region. Integration is currently underway, and the combined entity is expected to contribute meaningfully to FY26 topline.

“Pine Labs is carefully choosing markets where the digital payments ecosystem is underpenetrated but regulations are favorable,” said Karan Bhatia, Fintech Consultant at PwC. “That’s a smart playbook for long-term scalability.”

Cost Efficiency and Margin Discipline

The profitability milestone in FY25 was also driven by aggressive cost optimization, including rightsizing certain divisions and renegotiating partner commissions. The company’s EBITDA margin improved to 12.5%, up from 4.2% a year ago.

Employee benefit expenses declined 11% year-on-year after a moderate restructuring exercise in FY24, which impacted around 5% of the workforce, mostly in overlapping roles post-acquisitions.

“Margins are now tracking the path of a matured SaaS-like business model,” noted Amit Shah, Head of Equities at Motilal Oswal. “This gives confidence to investors eyeing sustained returns post-listing.”

Investor Outlook: A Strong Contender in the Fintech IPO Pipeline

As India's fintech space matures, investors are looking for companies that balance scale with sustainable economics. Pine Labs, with its solid merchant base, diversified revenue streams, and proven unit economics, is increasingly seen as one of the safer IPO bets in 2025.

Analysts believe that while the Indian IPO pipeline for fintechs—featuring names like MobiKwik and Razorpay—has been cautious, Pine Labs’ entry into profitability sets it apart.

“The company’s IPO story is likely to resonate with institutional investors, especially given the global pivot and improved profitability metrics,” said Radhika Nair, Fund Manager at DSP Mutual Fund.

Pine Labs' emergence into profitability ahead of its IPO not only boosts investor sentiment but also validates its hybrid model of hardware, software, and financial services. With the groundwork laid for a global push and a leaner, more efficient operating structure in place, the company appears well-positioned to tap into the next wave of fintech growth.

As the IPO looms closer, market participants will be keenly watching for Pine Labs’ DRHP filing, valuation guidance, and further updates on its global expansion strategy.