Pine Labs Files DRHP with SEBI for ₹2,600 Crore IPO

Fintech unicorn Pine Labs has officially filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (SEBI), taking a decisive step toward its long-anticipated initial public offering (IPO) worth ₹2,600 crore. The public issue comprises a combination of fresh issue and offer for sale (OFS) of up to 147.8 million equity shares.

Founded in 1998, Pine Labs is one of India's oldest fintech ventures. With this IPO, the Noida-based merchant commerce platform is set to join the growing league of listed Indian digital payments companies like Paytm and Mobikwik. The company's shares will be listed on both the National Stock Exchange (NSE) and the Bombay Stock Exchange (BSE).

Key Shareholders to Dilute Stake

A number of prominent investors are set to participate in the OFS. These include:

• Peak XV Partners (formerly Sequoia Capital India): ~3.9 crore shares (largest tranche, ~26.3% of OFS)
• Temasek's Macritchie Investments: ~1.48 crore shares
• PayPal: ~1.15 crore shares
• Mastercard: ~1 crore shares
• Other investors include Invesco, Actis, Madison India, and company executives such as CEO Amrish Rau, Chief Business Officer Kush Mehra, and cofounder Lokvir Kapoor.

Pre-IPO Placement and Fund Use

The DRHP also includes a pre-IPO placement option of up to ₹520 crore, which, if exercised, will reduce the size of the fresh issue accordingly.

Proceeds from the fresh issue will be used for:

• Debt repayment
• Expansion into Southeast Asia and West Asia (₹60 crore earmarked for this)
• Technology development and strategic acquisitions

The company aims to bolster its regulatory-compliant tech infrastructure and make senior international hires to lead its overseas push.

Financial Performance and Growth

For the first nine months of FY25, Pine Labs reported:

• Operating revenue: ₹1,208 crore (up 23% YoY)
• Net profit: ₹26 crore (vs. ₹151 crore net loss YoY)
• Expenses: ₹1,238 crore (moderate increase from ₹1,205 crore YoY)

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Operational Metrics

As of December 2024, Pine Labs served:

• 915,731 merchants
• 666 consumer brands and enterprises
• 164 financial institutions

The company also recorded a massive surge in transaction volume, processing ₹7.5 lakh crore—a 68% jump compared to ₹4.4 lakh crore in the previous year.

The IPO is being managed by a consortium of global and domestic investment banks, including Axis Capital, Morgan Stanley, Citigroup, J.P. Morgan, and Jefferies.