Pine Labs Targets $1B IPO in FY26 With $6B Valuation

Fintech giant Pine Labs has engaged five investment banks to oversee its $1-billion initial public offering (IPO), set to launch in the first half of the financial year 2026, according to sources familiar with the matter. 

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These banks include Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies. Among them, Axis Capital is the sole domestic bank due to its established relationship with Pine Labs, stemming from its connection with Axis Bank.

The company aims to complete its listing by the first half of FY26, and preparations are actively underway. Pine Labs has not provided a response to inquiries regarding the IPO, and efforts to reach the selected banks also went unanswered.

Additionally, a pre-IPO round involving a secondary transaction of approximately $100 million is planned, allowing current investors to sell their shares and make way for new stakeholders. Key backers of Pine Labs include Peak XV Partners, Mastercard Inc., Sofina, and Madison India Capital.

The company, headquartered in Singapore, is in advanced stages of relocating its base back to India, with plans to list on domestic stock exchanges. In August, Pine Labs received initial approval from the National Company Law Tribunal (NCLT) to merge its Indian and Singaporean entities.

For its IPO, Pine Labs is targeting a valuation exceeding $6 billion, higher than the $5 billion valuation it achieved during its private fundraising in March 2022. Earlier this year, US-based investment firms Baron Funds and Invesco revised the company’s valuation upwards. 

As of April, Baron Funds valued Pine Labs at $5.8 billion, compared to $5.3 billion in September 2023. Similarly, Invesco, which led a $100-million funding round in September 2021, estimated its valuation at $4.8 billion in December 2023, up from $3.9 billion in October of the same year.

If successful, the $1-billion IPO would position Pine Labs as one of the most prominent market debuts for a modern company, following Swiggy's $1.35 billion IPO in 2024 and Paytm's $2.5 billion listing in 2021.

At the group level, including its international operations and subsidiaries, Pine Labs reported a 9.8 percent rise in consolidated revenue, from ₹1,588 crore in FY23 to ₹1,743 crore in FY24. Most of its revenue comes from its Indian operations. However, the group's net loss widened to ₹339 crore, up from ₹227 crore in FY23, driven by higher operational and finance costs.

The Indian division reported nearly flat revenue at ₹1,317 crore for FY24, but its net loss increased threefold, from ₹56 crore in FY23 to ₹187 crore in FY24.