Pine Labs IPO: Fintech unicorn gears up for Nov 7 launch; trims issue size

Fintech unicorn Pine Labs is set to launch its highly anticipated initial public offering (IPO) on November 7, as per the red herring prospectus (RHP) filed with the Securities and Exchange Board of India (SEBI) on October 31, 2025. The digital payment solutions company had filed its draft red herring prospectus (DRHP) with SEBI on June 25, 2025, and received its approval on September 11, 2025.

According to the IPO paper submitted with the capital markets regulator, the public issue of the merchant payments and point-of-sale solutions provider is a combination of a fresh issue and an offer for sale (OFS) by existing shareholders.

The Noida-based company’s IPO comprises of fresh issue of ₹2,080 crore and offer for sale (OFS) of 8.23 crore shares. Existing investors, including PayPal, Mastercard, Peak XV Partners, Actis Pine Labs Investment Holdings, and MacRitchie Investments, will offload shares through the OFS route. Co-founder Lokvir Kapoor will also pare equity shares in the IPO.

The company has reduced the total issue size from what was originally proposed in its DRHP, where it had planned to raise ₹2,600 crore through a fresh issue. Under the OFS, existing shareholders had proposed to divest up to 14.78 crore shares.

The fintech firm intends to use the capital raised to repay certain borrowings availed by the company and its subsidiaries. The firm proposes to utilise an estimated amount of up to ₹530 crore to repay debt availed by the company. As of August 31, 2025, the aggregate outstanding borrowings of the company stood at ₹836.63 crore.

A part of the capital will be utilised to invest in subsidiaries—Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE—to expand its presence outside India. It will invest up to ₹60 crore in its overseas growth initiatives to strengthen its international presence in both digital infrastructure and transaction platforms, as well as issuing and acquiring platform operating segments in its key international markets, such as the Middle East and Southeast Asia.

The company proposes to invest ₹760 crore in IT assets, expenditure towards cloud infrastructure, technology development initiatives, and the procurement of DCPs.

India's digital payments industry is witnessing a huge surge, with total payment value (TPV) growing at a CAGR of 36% to ₹91 lakh crore ($1.1 trillion) in FY24, from ₹19 lakh crore ($226 billion) in FY19, according to Redseer Research and Analysis mentioned in the DRHP.

The digital payments market is projected to grow further to ₹255-280 lakh crore ($3.0-3.3 trillion) by FY29 at a CAGR of 23–25%, with increasing penetration of affordability solutions and card usage as the digital payments ecosystem matures across in-store and online channels.

Founded in 1998 by Rajul Garg, Lokvir Kapoor, and Tarun Upaday, Pine Labs is a provider of diversified payment solutions for businesses and merchants, competing with domestic players such as Paytm parent One 97 Communications, Razorpay, PhonePe, Infibeam Avenues, Zaggle, and PayU Payments. On the global front, it competes with Adyen, Shopify, Marqeta, and Block. It also provides a platform that accepts various payment methods, including debit and credit cards, BNPL, and e-wallets.

Pine Labs has raised total funding of $1.32 billion over 14 rounds from investors such as Peak XV Partners, Actis, and PayPal, with a current valuation of $5.05 billion, according to a Tracxn report.

The IPO is managed by Axis Capital, Morgan Stanley, Citi, J.P. Morgan, and Jefferies.