Pine Labs explores $1 billion IPO in India
What's the story
Pine Labs, a leading Asian digital payments provider backed by Peak XV Partners and Mastercard, is reportedly contemplating a $1 billion initial public offering (IPO) in India. The company, which offers financial services to over half a million merchants across more than 3,700 cities in India, may seek a valuation exceeding $6 billion for the IPO. According to the Economic Times, the company may issue new and secondary shares for its IPO.
Fundraising considerations
Pre-IPO fundraising round and market interest
In addition to the IPO, Pine Labs is also considering a pre-IPO fundraising round, as per the Economic Times. If the company proceeds with its IPO plans, it would mark the largest such move by an Indian fintech firm since One97 Communications Ltd., operator of Paytm, raised about $2.5 billion in 2021. This potential move coincides with a surge in investor interest in India's stock market, which has seen approximately $7 billion raised via IPOs this year alone.
Preliminary stage
Pine Labs's IPO plans still under consideration
The discussions around the IPO and pre-IPO fundraising are still in the preliminary stage, with no final decisions made yet. The details such as size and value of the IPO may change, according to the ET report. It's worth noting that Pine Labs had previously filed confidentially with the US Securities and Exchange Commission for an IPO in 2022.