Athira Sethu
Kochi, 26 November 2024
Pine Labs, a Singapore-based fintech company, is getting ready for its $1 billion initial public offering, which is scheduled to hit the market in the first half of the 2026 financial year, Moneycontrol said in a report.
It has chosen five investment banks, Axis Capital, Morgan Stanley, Citigroup, JP Morgan, and Jefferies, to advise on the IPO. Axis Capital is the only one of the domestic banks to have participated in this process, as it enjoys a strong connection with Pine Labs, the report said.
Meanwhile, Pine Labs is planning to shift its headquarters from Singapore to India. This will be the following the approval of the National Company Law Tribunal (NCLT) for the amalgamation of its domestic and the Singapore entities of the company. The IPO is expected to raise over $6 billion, more than the $5 billion valuation it gained when it raised in the private round in 2022, the Moneycontrol report added. The firm also has a secondary issuance planned where existing investors will sell shares in a pre-IPO round worth approximately $100 million.
Some of the early investors in Pine Labs include Peak XV Partners, Mastercard, and Sofina are also likely to participate in this pre-IPO round. This will enable some of the initial investors to exit or divest a portion of their stakes while making way for new investors. This is likely to be one of the largest Indian IPOs, and the company hopes to walk in the footsteps of some of the most notable previous IPOs like Swiggy and Paytm.
In terms of financial performance, Pine Labs saw revenue growth of 9.8% in FY24, thus notching Rs 1,743 crore as compared to Rs 1,588 crore for FY23. However, its net losses widened to Rs 339 crore as against Rs 227 crore in the previous fiscal year. Its India unit saw flat revenue in the fiscal year ending March 2024; however, the losses tripled.
