Fintech firm Pine Labs is planning a $1 billion initial public offering (IPO) in India, following approval from a Singapore court to relocate its base to India. The company will merge its Singapore and Indian entities, positioning itself for a significant public debut.
Industry sources suggest Pine Labs may seek a valuation exceeding $6 billion for the IPO. The offering is expected to include both new and secondary shares, and the company might conduct a pre-IPO fundraising round. This development, first reported by Bloomberg, has not yet been officially commented on by Pine Labs.
At approximately $1 billion, Pine Labs’ IPO would be the largest by an Indian fintech firm since One97 Communications Ltd., the operator of Paytm, raised about $2.5 billion in 2021, according to Bloomberg data.
Previously, Pine Labs had filed confidentially with the US Securities and Exchange Commission for an IPO in New York in 2022. That listing was expected to value the company between $5.5 billion and $7 billion. A confidential IPO allows a firm to keep its financial information and other details private for a longer period compared to the traditional S-1 filings in the US, which require full disclosure of a company’s finances and other data points.
Pine Labs operates as a leading merchant commerce omnichannel platform across India, the Middle East, and Southeast Asia. In digital payments, its cloud-based software Plural offers a comprehensive payment solution across channels. The company’s issuing business, powered by Qwikcilver, provides end-to-end technology solutions in prepaid transaction management, gift cards, and sales distribution. Pine Labs also owns Fave, a consumer fintech platform that facilitates smart payments and savings, while empowering merchants with loyalty solutions to engage customers.
In 2022, Pine Labs raised $150 million from Alpha Wave, valuing the company at approximately $5 billion. Initially planning an overseas IPO, the company postponed these plans due to volatile market conditions.
Pine Labs is among a growing number of startups relocating or reverse-flipping their domiciles back to India. Other companies considering similar moves include fintech, e-commerce, stock broking, healthcare, and edtech firms like PhonePe and Groww.
The shift highlights a broader trend of Indian startups returning to their home country to capitalize on favorable market conditions and regulatory environments, positioning themselves for growth and expansion in the burgeoning Indian market.
