Pine Labs files for IPO, eyes Rs 2,600 Cr fresh fundraise

Pine Labs has reportedly filed draft papers with the Securities and Exchange Board of India (SEBI) for an initial public offering (IPO). The company plans to raise Rs 2,600 crore through a fresh issue of shares.

In addition, existing investors—including Peak XV Partners, PayPal, and Mastercard—are looking to offload up to 147.8 million shares as part of the offer for sale, a Reuters report noted.

Funds raised through the fresh issue are expected to be used for international expansion, technological development, and debt reduction.

Morgan Stanley, Citigroup, and Jefferies have been appointed as book-running lead managers for the IPO, the draft documents showed.

According to Pine Labs’ June 24 EGM notice, the company has received shareholder approval to proceed with an initial public offering. The IPO will include a fresh issue of equity shares worth up to Rs 3,184.8 crore, an offer for sale by existing shareholders, and a pre-IPO placement option.

The shareholders also approved the Pine Labs Employee Stock Option Plan 2025, comprising a pool of 10.2 crore options. Of these, 7.45 crore are being issued in lieu of legacy ESOPs from Pine Labs Singapore following a merger, and 2.75 crore represent a new expansion.

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Pine Labs' India, Singapore entities report higher FY24 losses as expenses rise

The company also confirmed the appointment of Kush Mehra as Executive Director and President and Chief Business Officer – Digital Infrastructure and Transaction Platform, effective May 9, 2025.

Pine Labs’ India and Singapore entities reported higher losses in FY24 despite modest revenue growth, as rising expenses weighed heavily on profitability.

The Singapore-based parent saw revenue grow 9.77% year-on-year to Rs 1,743.27 crore, but its net loss widened by 49.28% to Rs 339.63 crore, driven by a 21.32% surge in cost of sales and increased spending on product development and marketing.

Gross profit declined marginally by 1.11%, while operating losses rose 13.01% to Rs 378.40 crore.

In India, the company posted a 2.88% increase in revenue from operations to Rs 1,317.47 crore, but total expenses jumped 15.79% to Rs 1,623.87 crore. This was largely due to a steep 72.4% rise in advertising and promotional costs to Rs 73 crore, and a 12% increase in legal and professional fees to Rs 128 crore.

As a result, Pine Labs India reported a net loss of Rs 187.17 crore in FY24, more than triple the Rs 56.24 crore loss recorded the previous year.