Pine Labs taps IPO market with ₹2,600 cr fresh issue; Peak XV, PayPal to pare stakes

Fintech unicorn Pine Labs has filed its Draft Red Herring Prospectus (DRHP) with the Securities and Exchange Board of India (Sebi) to raise capital via an initial public offering (IPO). According to the DRHP submitted with the capital markets regulator, the public issue of the merchant payments and point-of-sale solutions provider is a combination of fresh issue and offer for sale (OFS) by existing shareholders.

The Noida-based company plans to raise up to ₹2,600 crore through a fresh issue of shares, while existing investors, including PayPal, Mastercard, Peak XV Partners, and others, will offload up to 14.78 crore shares though the OFS route. Co-founder Lokvir Kapoor will also pare 37.65 lakh equity shares in the IPO.

According to the DRHP, Pine Labs may also consider a pre-IPO placement of shares worth up to ₹520 crore. 

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

Objective of the IPO

The fintech firm intends to use the capital raised to repay certain borrowings availed of by the company and its subsidiaries. As approved at its board meeting on June 25, 2025, the company proposes to utilise an estimated amount of up to ₹870 crore to repay debt availed of by the company and its subsidiaries, namely Synergistic and Cashless Technologies.

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 generated 14.15% of its revenue from customers outside India during the nine months ended December 31, 2024. For 9MFY25, the company’s revenue from operations stood at ₹1,675.63 crore, of which ₹237 crore was contributed by customers outside India.

The company also proposed to invest in IT assets, inorganic acquisitions, and meet corporate purposes.

Digital payments in India to grow to ₹255-280 lakh cr by FY29

India's digital payments industry is witnessing a huge surge, with total payment value (TPV) growing at a CAGR 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 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 cards usage as the digital payments ecosystem matures across in-store and online.

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, 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.