Breaking Boundaries: Pine Labs’ Global Expansion Strategy and IPO Valuation Adjustment

Pine Labs: Indian Fintech Startup Goes Public at Lower Valuation

Pine Labs, a prominent Indian fintech startup supported by PayPal and Mastercard, is set to make its debut on the stock market this week. The company’s valuation for its initial public offering is approximately 40% lower than its last private funding round. Despite this valuation adjustment, Pine Labs remains steadfast in its ambition to expand its fintech services globally.

The fintech firm, headquartered in Gurugram, has priced its shares in the range of ₹210–₹221 (around $2.00–$2.50) each, placing its total market value at about ₹254 billion (approximately $2.9 billion) at the upper end of the spectrum. This valuation marks a significant decrease from its previous private valuation of over $5 billion back in 2022.

Moreover, Pine Labs has scaled down its primary offering by 20% to ₹20.8 billion (roughly $234 million) from the initially planned ₹26 billion. The offer for sale component has also been reduced by 44% to 82.3 million shares from the previous 148 million shares. Notably, existing investors such as Peak XV Partners, Temasek Holdings, PayPal, and Mastercard are among those divesting a portion of their holdings in the IPO.

CEO Amrish Rau emphasized that the decision to decrease the offer for sale was influenced by investors’ preference to retain a larger proportion of their shares. Rau highlighted the collaborative effort required for a successful IPO, underscoring the importance of garnering support from stakeholders.

Established in 1998, Pine Labs initially focused on providing point-of-sale terminals for merchants before transitioning to a comprehensive suite of fintech solutions. The company now facilitates bill payments through platforms like Amazon Pay and CRED, as well as account-aggregator-based transactions, in addition to offering various payment, transaction, and acquiring services.

Pine Labs currently derives about 70% of its revenue from digital infrastructure and transaction services, with the remaining 30% generated from its issuing and acquiring businesses, according to Rau.

The company stands out among Indian startups for its international reach, serving customers across 20 countries, including Malaysia, Singapore, Australia, Africa, the UAE, and the U.S. Pine Labs’ strategic move to list on Indian stock exchanges aligns with the government’s efforts to bolster the country’s fintech ecosystem and enhance global competitiveness.

Notably, Pine Labs has witnessed robust revenue growth in international markets, with a nearly 58% increase between the financial years 2023 and 2025. Rau emphasized the company’s unique position in offering its fintech solutions globally, underscoring the demand for its technology stack in international markets.

In its domestic market, Pine Labs faces competition from industry players like Razorpay, Paytm, and PhonePe. The company achieved profitability in the June quarter, recording a net profit of ₹47.86 million (approximately $540,000) compared to a loss in the previous year. Revenue from operations also saw a 17.9% year-over-year growth, reaching ₹6.16 billion (around $69 million). Notably, Pine Labs’ overseas operations contributed about 15% of total revenue, indicating its growing international footprint.

Pine Labs’ IPO launch comes amidst a wave of Indian tech firms gearing up to go public, including Groww, Lenskart, Shadowfax, Meesho, and BoAt, all slated to introduce their offerings this year.