Pine Labs to raise up to Rs 6,000 Cr from IPO: Report

Merchant payments and lending platform Pine Labs is reportedly set to file its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) by the end of June.

The Noida-based firm is looking to raise Rs 5,000-6,000 crore ($585-700 million) through the IPO, targeting a valuation between $4-5 billion, according to a report by The Economic Times. 

Pine Labs had earlier filed confidential IPO papers with the US Securities and Exchange Commission in 2022, but the plan was later shelved. The company has since pivoted to pursuing a domestic listing and completed its shift in domicile from Singapore to India earlier this year.

The fintech firm also converted to a public company and appointed independent directors, a development which was first reported by Entrackr.

The company has roped in Axis Capital, JP Morgan, Morgan Stanley, Citi, and Jefferies as lead bankers for the IPO, according to the report.

Pine Labs declined to comment on queries sent by YourStory.

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

Pine Labs' India and Singapore entities reported a slight increase in revenue in FY24 but were bogged down by a significant rise in expenses, leading to a much larger loss. Pine Labs is registered in Singapore and files separate financial results for Indian and overseas entities.

The Singapore arm saw a 9.77% year-on-year (YoY) rise in revenue to Rs 1,743 crore in the financial year ended March 31, 2024, but escalating costs led to a 49.28% YoY increase in net loss, which ballooned to Rs 339.63 crore. In FY23, it earned Rs 1,588.10 crore in revenue.

The Indian entity's revenue from operations rose by 2.88% YoY to Rs 1,317.47 crore in FY24, up from Rs 1,280.54 crore a year ago, as per filings with the Registrar of Companies. However, total expenses surged by 15.79%, reaching Rs 1,623.87 crore compared with Rs 1,402.43 crore the previous year.