Fintech

Pine Labs Plans $1 Billion IPO in India After Shift from Singapore


Pine Labs, the prominent fintech firm backed by Peak XV Partners and Mastercard Inc, is reportedly preparing for a $1 billion initial public offering (IPO) in India. This move follows the company’s recent approval from a Singapore court to relocate its base to India, effectively merging its Singapore and Indian entities.

According to industry sources, Pine Labs may seek a valuation exceeding $6 billion with this IPO. The company plans to issue both new and secondary shares and might consider a pre-IPO fundraising round ahead of any listing. Bloomberg first reported this development, though Pine Labs has not commented on it.

If Pine Labs’ IPO proceeds as planned, it would be the largest by an Indian fintech firm since One97 Communications, the operator of Paytm, raised approximately $2.5 billion in 2021, based on Bloomberg data.

Previously, Pine Labs had filed confidentially with the US Securities and Exchange Commission for an IPO in New York in 2022. Sources indicated that the listing could have valued Pine Labs between $5.5 billion and $7 billion. A confidential IPO allows a company to withhold its financial information and other details from competitors for a longer period compared to traditional S-1 filings, which require full disclosure of a firm’s finances and other data points.

Pine Labs operates as a leading merchant commerce omnichannel platform across India, West Asia, and Southeast Asia. Its digital payments solution, Plural, serves as a comprehensive payment destination across various channels. The company’s issuing business is powered by Qwikcilver, which offers technology service solutions in pre-paid transaction management, gift cards, and sales and distribution.

In addition to these services, Pine Labs provides consumer applications through Fave, a fintech platform that facilitates smart payments and savings for consumers. Fave also offers merchants a loyalty solution to engage and grow their customer base in innovative ways.

In 2022, Pine Labs raised $150 million from Alpha Wave, valuing the company at approximately $5 billion. The firm initially planned an overseas IPO, but it was postponed due to volatile market conditions.

Pine Labs’ move to relocate to India and pursue a domestic IPO is part of a broader trend among Indian startups. Many companies, including PhonePe and Groww, are considering shifting their base or performing a reverse flip to India. These startups span various sectors, including fintech, e-commerce, stock broking, healthcare, and edtech.

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