Fintech

Pine Labs Secures Initial NCLT Approval to Merge Indian and Singapore Entities

• ByStartupStory     |    August 20, 2024

Fintech major Pine Labs has taken a significant step toward consolidating its operations by securing initial approval from the National Company Law Tribunal (NCLT) to merge its domestic and Singapore entities. This marks a key development as the company shifts its domicile from Singapore back to India.

The NCLT has approved Pine Labs’ first motion plea, paving the way for the company to file a second motion for final approval. “In view of the above, the First Motion Application stands allowed by giving liberty to the Applicant Company to file Second Motion Petition…” the tribunal’s order stated.

The merger is expected to bring operational efficiencies by reducing overhead expenses, including administrative and statutory compliances. “The proposed Amalgamation would result in consolidation and simplification of the overall group structure, to enable more efficient management, control, and operational excellence of its various businesses,” noted the tribunal order, as reviewed by Business Standard. The order further highlighted that the merger would enable Pine Labs to efficiently allocate and utilize resources “by avoiding duplication between India and Singapore.”

This move comes after Pine Labs had already received approval from a Singapore Court to relocate its base to India. The Noida-based digital payments company is likely preparing for a potential Initial Public Offering (IPO) worth $1 billion, according to a June report by Business Standard. If successful, this IPO could become the largest by an Indian fintech company since One97 Communications, the parent company of Paytm, went public in 2021.

Pine Labs has raised a total of $1.32 billion over 14 funding rounds, with its valuation currently standing at $5.8 billion, according to data from Tracxn.

The cost associated with this reverse flipping of domicile remains unclear at this time. However, the strategic move to merge its entities is anticipated to bring about more streamlined operations and better control over its diverse businesses, which could bolster Pine Labs’ position in the market ahead of its planned IPO.

Follow Startup Story