Fintech firm Pine Labs weighs $1-bn IPO, may seek $6-bn valuation

Pine Labs Pvt, a prominent Asian digital payments provider with financial backing from Peak XV Partners and Mastercard Inc., is contemplating the possibility of initiating a substantial $1 billion initial public offering (IPO) in India. This potential move comes at a time when there is a growing interest and enthusiasm among investors in the country's stock market.

Sources close to the matter have indicated that the company is aiming for a valuation exceeding $6 billion through the IPO, and they prefer not to be identified as the matter is considered private. Pine Labs is deliberating on the issuance of both new and secondary shares and is also considering the option of conducting a pre-IPO fundraising round prior to the listing, according to two of the sources.

If the IPO materializes at around $1 billion, it would be the largest such offering by an Indian fintech company since One97 Communications Ltd., the parent company of Paytm, successfully raised about $2.5 billion in 2021, as per data compiled by Bloomberg.

It's worth noting that the company had previously submitted a confidential filing with the US Securities and Exchange Commission for a potential IPO in 2022.

In a significant indication of market enthusiasm, India has witnessed IPO fundraising amounting to about $7 billion this year, surpassing the volume from the corresponding period in 2020 by over threefold, as outlined in data compiled by Bloomberg. This surge has positioned the country as one of the most vibrant markets for share sales worldwide.