Pine Labs aims to take Indian fintech global even as it cuts valuation for IPO

Pine Labs, the Indian fintech startup backed by giants like PayPal and Mastercard, is gearing up for its public offering this week, albeit at a valuation around 40% lower than its previous funding round. The company, based in Gurugram, has set its share price between ₹210 and ₹221 (approximately $2.00 to $2.50), which places its valuation at about ₹254 billion (around $2.9 billion) at the upper limit. This marks a significant drop from its last private valuation exceeding $5 billion in 2022. In a strategic move, Pine Labs has scaled back its primary offering by 20% to ₹20.8 billion (roughly $234 million) from an earlier proposal of ₹26 billion. Additionally, the offer for sale has been reduced by 44%, from an initial 148 million shares down to 82.3 million. Major investors such as Peak XV Partners, Temasek Holdings, PayPal, and Mastercard are participating in the sale of their stakes. During a press briefing on Monday, CEO Amrish Rau explained that many investors opted to retain a larger share of their holdings, leading to a reduced offer for sale. He emphasized that the IPO pricing strategy was designed to foster goodwill and support among stakeholders, stating, "We believe we were able to maintain that because, at the end of the day, it takes a village to come together to create a successful IPO." Founded in 1998, Pine Labs initially specialized in providing point-of-sale terminals but has since expanded its offerings to include bill payments through platforms like Amazon Pay and CRED. The company now provides a wide array of payment and transaction services. Currently, about 70% of its revenue is derived from digital infrastructure and transaction services, with the remaining 30% from its issuing and acquiring segments. Pine Labs is one of the select Indian startups already making strides in international markets, with aspirations to broaden its global footprint post-listing. This ambition aligns with the Indian government's initiative to foster competitive fintech solutions on the global stage. The company also joins a growing trend of tech firms relocating their headquarters to India to better engage with the local retail investor base and comply with regulatory requirements. Serving over 980,000 merchants, 716 consumer brands, and 177 financial institutions, Pine Labs has facilitated more than six billion transactions, totaling over ₹11.4 trillion (around $128 billion). Its operations span 20 countries, including Malaysia, Singapore, Australia, Africa, the UAE, and the U.S. Between financial years 2023 and 2025, the company reported a nearly 58% revenue increase from international markets. Rau remarked on the uniqueness of India's fintech landscape, asserting, "What we have done in fintech in India, no other country has been able to do anything close to that. We have the opportunity to take this IP knowledge, the technology stack that we have developed, and make it global." In a competitive domestic market, Pine Labs faces rivals such as Razorpay, Paytm, and Walmart-owned PhonePe. The company recently achieved profitability, reporting a net profit of ₹47.86 million (approximately $540,000) in the June quarter, a turnaround from a loss of ₹278.89 million the previous year. Its operational revenue also saw a year-over-year increase of 17.9%, reaching ₹6.16 billion (about $69 million). Notably, its international operations contributed around 15% to total revenue, amounting to ₹943.25 million (about $11 million), up from ₹795.97 million a year prior. Pine Labs' IPO arrives amid a surge of Indian tech companies preparing for public listings, including Groww, Lenskart, Shadowfax, Meesho, and BoAt, all expected to debut their offerings this year.