Pine Labs Prepares for IPO with Draft Red Herring Prospectus Filing

Merchant payments and lending platform Pine Labs is preparing to submit its draft red herring prospectus (DRHP) to the Securities and Exchange Board of India (Sebi) by the end of June. As reported by The Economic Times, this Noida-based firm seeks to raise between Rs 5,000–6,000 crore ($585-700 million) through the initial public offering (IPO), aiming for a valuation of $4–5 billion, consistent with the figures from its last private funding round.

Pine Labs Moves Forward with IPO Plans

Pine Labs has spent several years contemplating entry into public markets and notably filed confidential IPO documents with the U.S. Securities and Exchange Commission (SEC) in 2022. That strategy, however, did not succeed, prompting the company to shift its attention towards an IPO in India. Earlier this year, Pine Labs finalised its transition from Singapore to India.

Recent Developments Indicating a Nearer IPO

Recent actions by Pine Labs suggest that the filing of its DRHP may be imminent. The company has converted into a public entity and appointed independent directors to its board. Startup Superb reported this development exclusively.

Financial Backers and Key Milestones

The company has secured the expertise of major financial institutions including Axis Capital, JP Morgan, Morgan Stanley, Citi, and Jefferies as bankers for the IPO.

As per startup data intelligence platforms, Pine Labs has successfully raised nearly $1.3 billion in funding from a variety of investors, including Peak XV Partners, Temasek, PayPal, Mastercard, and others. Its current private valuation stands at $5 billion.

Financial Performance Overview

In the fiscal year concluding March 2024, Pine Labs experienced a slight 2.8% increase in operating revenue, reaching Rs 1,317 crore. Nevertheless, the company faced significant losses, which increased over three times to Rs 187 crore during the same timeframe. The financial details for FY25 have yet to be disclosed.