In a significant milestone for India’s fintech landscape, merchant payments and lending platform Pine Labs has officially filed its Draft Red Herring Prospectus (DRHP) with SEBI, setting the wheels in motion for a highly anticipated IPO.
The IPO comprises a fresh issue of equity shares worth Rs 2,600 crore (approx. $305 million) and an Offer for Sale (OFS) of 14.78 crore shares, according to the DRHP filed on Thursday.
Prominent investors lining up to dilute their stake include Peak XV (formerly Sequoia India), which will offload 3.9 crore shares, accounting for over 26% of the OFS. Others participating in the OFS include Actis Pine Labs Investment, Temasek, PayPal, Mastercard Asia, Invesco, Sofina, BlackRock, and a cohort of key individuals including CEO Amrish Rau, co-founder Lokvir Kapoor, and CBO Kush Mehra.
As per the DRHP:
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Peak XV holds the largest external stake at 20.35%
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Temasek and PayPal follow with 7.1% and 6%
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Mastercard (5.24%) and Alpha Wave (3.39%) are also notable backers
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Promoters and leadership team members cumulatively own close to 5%
The public issue will be listed on both NSE and BSE, and will be managed by a robust set of lead bankers including Axis Capital, Morgan Stanley, CITI, JP Morgan, and Jefferies.
What will the funds be used for?
Pine Labs will deploy the proceeds from the fresh issue toward repayment of borrowings, tech upgrades, investments in subsidiaries, and general corporate purposes — all aimed at consolidating its position in digital merchant services and embedded lending.
Strong Financials Backing the Move
In the first nine months of FY25, Pine Labs clocked Rs 1,208 crore in revenue, a solid 23% YoY growth from Rs 982 crore in the previous period. The company also swung to a net profit of Rs 26.1 crore, signaling a maturing financial profile ahead of listing.
With this IPO, Pine Labs joins the elite club of Indian fintech players making public market debuts, and investors will be closely watching how the sector performs under public scrutiny.
-By Muskan Dengra
