Fintech firm Pine Labs files draft papers with SEBI to raise funds via IPO

Indian fintech firm Pine Labs has filed its draft red herring prospectus (DRHP) with the markets regulator, the Securities and Exchange Board of India (SEBI), for its initial public offering (IPO) on Wednesday, 25 June 2025, according to an exchange filing.

The IPO draft papers on Thursday showed that the company is set to issue a combination of fresh equity s worth ₹2,600 crore and an offer-for-sale (OFS) component of more than 14.78 crore shares. 

Pine Labs is a fintech firm which offers full-stack payment solutions, including point-of-sale machines, to merchants for card payments and competes with Paytm and Walmart's PhonePe.

Existing investors, including Peak XV, PayPal and Mastercard, are selling up to 14.78 crore shares via the public issue.

Draft papers showed that proceeds from the fresh shares are aimed at funding the repayment or prepayment of company borrowings up to ₹870 crore. The company is also planning to invest ₹60 crore in its overseas subsidiaries and ₹760 crore in IT assets like cloud infrastructure and other technological initiatives. 

The remaining proceeds raised from the public issue will be allocated for general corporate purposes. 

Morgan Stanley, Citi Global, Axis Capital, JPMorgan India and Jefferies are the book-running lead managers of the offering, while KFin Technologies is the registrar to the offer.

Pine Labs Details

Pine Labs provides comprehensive payment solutions, including point-of-sale terminals for merchants to accept card payments. It competes against Paytm and Walmart's PhonePe. The company plans to use the proceeds from its IPO to invest in international operations, enhance its technology, and reduce its debt.

India's IPO market has experienced a slow start this year; however, foreign investors are beginning to return to local equities after a significant withdrawal, drawn in by substantial block trades that often signal a forthcoming recovery in IPO activity. 

Pine Lab Financials 

According to DRHP data, Pine Lab's financials highlight that the company earned a net profit of ₹26.24 crore as of the nine months ended at the December quarter of the 2024-25 fiscal year. The company incurred a net loss of ₹151.63 crore in the same period a year ago. 

The revenue from its operations was at ₹1,273.88 crore as of the nine months ended at the December quarter of the financial year ended 2024-25, compared to ₹1,006.56 crore in the same period a year ago. 

The proceeds from Indian IPOs have decreased by 4.2% this year compared to the same period last year, while the volume of issues has dropped by 29%, according to data from LSEG up to mid-June. 

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.