Pine Labs, the fintech force based out of Noida, files its DRHP (Draft Red Herring Prospectus) with SEBI on June 26, 2025. It’s more than just paperwork—it’s a bold declaration that the company is ready to hit the public markets and raise ₹2,600 crore. The plan? A fresh issue of shares worth ₹2,600 crore and a massive offer for sale (OFS) involving 14.78 crore shares. Big names like Peak XV Partners, Temasek, PayPal, and Mastercard are heading for the exit.
This IPO isn’t just a capital-raising exercise—it’s Pine Labs planting its flag among India’s elite fintechs. Think of it as the next chapter in a book that already has the likes of Paytm and MobiKwik. There’s also discussion of a pre-IPO placement of ₹520 crore. If that goes through, the fresh issue shrinks accordingly. The money? It’s earmarked for paying off debt, ramping up tech infrastructure, expanding abroad, and maybe even a few savvy acquisitions.
Rewind to 1998. Pine Labs was a humble card-based payment outfit. Today, it’s a juggernaut offering everything from point-of-sale machines to loyalty programs and BNPL schemes. In the nine months leading up to December 2024, the company clocked ₹1,208 crore in revenue—a 23% leap year-over-year—and bounced back into the black with a ₹26 crore profit. It handled ₹7.5 lakh crore in transaction value, serving 9.15 lakh merchants. That’s not a small feat.
Steered by the seasoned Amrish Rau and visionary co-founder Lokvir Kapoor, Pine Labs is now gearing up for one of the most talked-about IPOs in Indian startup history. Axis Capital, Morgan Stanley, Citi, JP Morgan, and Jefferies are quarterbacking the listing, which will debut on NSE and BSE.
1. Introduction: Pine Labs files DRHP
Pine Labs files DRHP officially jumping into the IPO arena, with SEBI to raise a hefty ₹2,600 crore through a mix of fresh equity and an investor sell-off. It’s not just a box ticked—it’s a loud, unmissable signal that India’s startup ecosystem isn’t quietly hustling anymore. It’s strapping on its boots, marching to the public markets, and demanding its space.
2. The IPO Structure and Objectives
2.1 Breakdown of the Offering
Here’s the structure:
A fresh issue valued at ₹2,600 crore. An offer for sale (OFS) of 14.78 crore shares.
Key investors are heading for the exits—Peak XV is dropping 3.9 crore shares, while Temasek, PayPal, Mastercard, and Actis are also cashing out. Their retreat doesn’t scream panic—it whispers confidence. Pine Labs isn’t clinging to VC crutches anymore. It’s stepping onto the public stage, solo, sharp, and battle-tested.
2.2 Purpose of Fund Utilisation
Here’s how they plan to spend it:
₹870 crore to clear debt. ₹760 crore on cloud systems, IT gear, and digital checkout tech. ₹60 crore to bolster global arms like Qwikcilver Singapore and Pine Labs UAE. The rest? Strategic buys, general ops, and scaling.
They’re also mulling a ₹520 crore pre-IPO placement to court key institutional players.
3. Understanding Pine Labs: Business and Operating Model
3.1 How Pine Labs Operates
Once known for powering card payments at fuel stations, Pine Labs now delivers an entire stack of tools to merchants: PoS systems, BNPL offerings, gifting tech, and more.
The company’s tech interfaces with 666 brands and 164 financial institutions, enabling over 9.15 lakh merchants to run smoother, smarter operations.
3.2 Revenue Model
Money flows in from several streams:
- Merchant fees from PoS usage.
- Commissions from brand deals.
- SaaS-based subscriptions.
- BNPL transaction charges and affiliate tie-ins.
In FY25’s first nine months, revenue hit ₹1,208 crore—up 23% from last year.
4. Financial Performance and Growth Metrics
4.1 Financial Highlights
Revenue: ₹1,208.2 crore for 9M FY25 Net profit: ₹26.14 crore (vs. ₹187 crore loss in FY24) GTV: ₹7.5 lakh crore Transactions: 3.97 billion
Going from red to black shows Pine Labs has not only tightened the belt, but it’s mastered the margins.
4.2 Industry Rankings
Redseer places Pine Labs in the top five for in-store digital commerce and highlights its strength in Bharat Bill Payment solutions.
5. Market Landscape and Competition
5.1 Domestic Competitors
Back home, Pine Labs rubs shoulders with: Paytm, PhonePe, Razorpay, Infibeam, PayU
They all offer something unique, but Pine Labs’ marriage of offline and digital gives it an extra edge.
5.2 Global Competitors
International rivals include: Adyen, Shopify, Block (Square)
Pine Labs is actively making moves in Southeast and West Asia, trying to carve out a name internationally.
6. Investor Background and Exit Dynamics
6.1 Key Investors and Their Stakes
Who owns what: Peak XV: 20.35% Temasek: 7.1% PayPal: 6% Actis: 5.78% Mastercard: 5.24% Amrish Rau: 2.35% Lokvir Kapoor: 1.97%
Peak XV stands to gain the most, with its shares costing just ₹5.60—a 43.5x jump compared to Invesco’s cost.
6.2 Exit Strategies
PayPal, Actis, Mastercard—they’re trimming their stakes. Even leaders like Rau and Mehra are letting go of a slice. But that doesn’t signal weakness—it signals faith in the future.
7. Journey and Evolution of Pine Labs
7.1 Founding and Early Days
Born in 1998, Pine Labs started with smart cards for petrol pumps. It pivoted to PoS tech and never looked back.
7.2 Key Milestones
2017: Bought Qwikcilver, nailing the loyalty and gift segment. 2020: Rolled out Fave for online payments. 2022: Hit a $5 billion valuation. 2024: Shifted base from Singapore to India.
7.3 Leadership Vision
CEO Amrish Rau has taken the company into uncharted territory: subscription billing, digital lending, and offline-to-online solutions.
8. Fintech Industry Trends and Outlook
8.1 India’s Fintech Growth Story
The fintech scene in India isn’t just heating up—it’s in full-blown ignition mode. UPI adoption is snowballing, digital wallets feel almost instinctive now, and Pine Labs? They’re not just catching the wave—they’re strapping in for a rocket-fueled ride through this payment revolution.
By 2025, the industry is forecasted to be worth $150 billion. A majority of Indian SMBs are set to go fully digital.
8.2 IPO Boom in Indian Startups
2023 was slow, but 2024-25 is bringing the heat. Pine Labs is leading the IPO revival among tech-first firms.
9. What Problem Does Pine Labs Solve?
Pine Labs bridges the gap between physical retail and digital finance. It simplifies payments, boosts customer loyalty, and helps small shops punch above their weight.
Its tech helps merchants beyond the metros, reaching into India’s smaller cities and towns.
Learning for Startups and Entrepreneurs
Here’s what Pine Labs teaches us:
- Pivot when needed. Adapt or die.
- Timing an IPO isn’t luck; it’s strategy.
- Profits win hearts—and investors.
- Think product-first. Build what users need.
- Strong leadership sets the tone for everything else.
About Foundlanes
At foundlanes.com, stories like Pine Labs are the reason we exist. We cover what matters to founders, investors, and dreamers in the Indian and global startup ecosystems. IPO insights, funding trends, founder journeys—we bring it all to light, startup by startup.