Indian fintech company Pine Labs, supported by venture capital firm Peak XV, is looking to launch a domestic initial public offering in the latter half of 2025, despite the current market challenges, according to CEO Amrish Rau.
Pine Labs offers comprehensive payment solutions, including POS machines for card transactions, competing with Paytm and Walmart's PhonePe in the market. The Indian stock markets have been underperforming, affecting market capitalization due to negative investor sentiment.
However, Rau remains resolute, expressing, "we would want to go for an IPO in the second half of this year," emphasizing the company's commitment to long-term growth over short-term market conditions.
If successful, Pine Labs plans a $1 billion IPO, intending to raise fresh capital while existing investors may sell stakes. This potential IPO would be the second largest in India's fintech sector, following Paytm's $2.5 billion listing in 2021.
With a last valuation of $5 billion in 2022 and backers like PayPal, Mastercard, and Singapore's Temasek (TEM.UL), Pine Labs aims to broaden revenue sources by focusing on technology solutions for banks, fintech firms, and businesses.
Notably, the company will relocate its headquarters to India. In the fiscal year 2023-24, Pine Labs reported revenue of $200.4 million, a slight increase from $189.72 million the previous year, while losses widened to $40.68 million from $27.24 million during the same period.