Pine Labs Receives SEBI Nod for $1 Billion IPO

Fintech major Pine Labs has secured approval from the Securities and Exchange Board of India (SEBI) to move forward with its much-anticipated initial public offering (IPO). The clearance, granted through SEBI’s observations dated September 11, marks an important milestone for the payment solutions provider as it prepares to make its public market debut.

IPO Structure and Offer Details

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According to its Draft Red Herring Prospectus (DRHP) filed in June, the IPO will consist of a fresh issue of equity shares worth up to ₹2,600 crore (around $304 million) and an offer for sale (OFS) of up to 14.78 crore shares. Prominent investors and stakeholders, including Mastercard, Peak XV Partners, Macritchie Investments, PayPal, and company cofounder Lokvir Kapoor, are expected to sell part of their holdings through the OFS route.

Market reports suggest that the Upcoming IPO could be valued at up to $1 billion, with Pine Labs eyeing an overall valuation of around $6 billion, putting it among India’s most closely watched fintech listings.

Utilisation of Proceeds

The company intends to use the net proceeds from the fresh issue for:

• Repayment of outstanding borrowings helps reduce its debt burden.
• Investment in IT and cloud infrastructure, supporting product innovation and technological expansion.
• Strengthening its overseas presence, particularly through its subsidiaries Qwikcilver (Singapore), Pine Payment Solutions (Malaysia), and Pine Labs UAE.

About Pine Labs

Founded in 1998 by Lokvir Kapoor, Rajul Garg, and Tarun Upadhyay, Pine Labs has grown into one of India’s leading end-to-end digital payment providers. Its portfolio includes point-of-sale (PoS) terminals, online payment gateways, and value-added merchant services. The company currently serves more than 500,000 merchants across India, the Middle East, and Southeast Asia.

The fintech player has shown a significant turnaround in financial performance. In the first nine months of FY25, Pine Labs posted a net profit of ₹26.1 crore, a sharp improvement from a net loss of ₹151.6 crore in the same period last fiscal. Revenue climbed 23% year-on-year to reach ₹1,208.2 crore, underscoring strong market demand and operational efficiency.

Market Context

The SEBI approval comes at a time when India’s capital markets are witnessing strong activity in the fintech and consumer sectors. Alongside Pine Labs, the regulator has also cleared the IPOs of Hero Motors and Canara Robeco Asset Management, signalling a robust pipeline of upcoming listings.

Conclusion

With regulatory approval in hand, Pine Labs is expected to file its Red Herring Prospectus (RHP) shortly, taking the next major step towards its listing. Backed by strong financials, established global operations, and a growing merchant base, the IPO is set to attract considerable investor attention as the company looks to scale further and compete with rivals like Paytm and PhonePe