Pine Labs Gets Warm Market Welcome On $440m India Ipo Despite A Valuation Trim

Payment exertion institution Pine Labs, backed by PayPal and Mastercard, won complete nationalist investors connected Friday, finishing its first time of waste and acquisition 14% higher moreover aft lowering its valuation for its $440 cardinal IPO. This makes it nan second-largest Indian fintech listing this twelvemonth aft online brokerage Groww’s astir $750 cardinal debut earlier this week.

The banal opened astatine ₹242 and roseate arsenic precocious arsenic ₹284 earlier settling astatine ₹252, up from nan rumor value of ₹221, resulting successful a marketplace capitalization of ₹289 cardinal (approximately $3.3 billion) for nan Gurugram-based company.

It’s a measurement down from Pine Labs’ 2022 private valuation of complete $5 billion, but still a clear awesome that investors are backing India’s increasing push to return its fintech exemplary global.

Founded successful 1998, Pine Labs has been steadily expanding beyond India and now operates successful 20 markets, including Malaysia, Singapore, Australia, nan UAE, nan U.S., and immoderate parts of Africa. What started arsenic a point-of-sale terminal supplier has since evolved into a broader payments level that supports measure payments, account-aggregator transactions, and a scope of merchant and acquiring services.

In India, Pine Labs competes pinch nan likes of Razorpay, Paytm, and Walmart-owned PhonePe. The institution became profitable successful nan June quarter, posting a nett profit of ₹47.86 cardinal (about $540,000), compared pinch a nonaccomplishment of ₹278.89 cardinal a twelvemonth earlier. Revenue from operations roseate 17.9% year-over-year to ₹6.16 cardinal (around $69 million), while its overseas business contributed astir 15% of full revenue, rising to ₹943.25 cardinal (about $11 million) from ₹795.97 cardinal a twelvemonth earlier.

“We will ne'er extremity being a startup,” said Amrish Rau, CEO of Pine Labs, during its nationalist listing ceremony. “Now that we are a listed company, [that word] will not beryllium heard successful our halls.”

Existing investors, including Peak XV Partners, Temasek Holdings, PayPal, and Mastercard, were among those who sold portion of their holdings successful nan nationalist listing.

“Pine Labs ne'er wanted to compete connected price,” said Shailendra Singh, managing head astatine Peak XV Partners. “It ever wanted to compete connected a superior proposition. And we cognize this institution would support compounding because location were specified beardown moats successful nan business, and it shaped our worldview of really to deliberation astir companies and beryllium diligent and fto ecosystems mature.”

Peak XV Partners, which split from Sequoia Capital successful 2023, first invested successful Pine Labs successful 2009 amid nan world financial crisis. The VC patient is besides seeing back-to-back partial nationalist exits this week, arsenic Pine Labs is its 2nd portfolio institution to database aft Groww, which debuted connected Indian exchanges pinch a 12% popular and closed its first trading time 29% supra its rumor value of ₹100.

Pine Labs’ marketplace debut is portion of a broader wave, arsenic nan public-listing motor successful India is revving up. From tech and fintech to e-commerce and manufacturing, much startups are choosing to spell nationalist — fuelled by beardown home investor appetite, eased interest-rate conditions, and regulatory nudges to boost listings. Globally, finance has been nan apical IPO sector this year, pinch IPOs worthy $34.34 cardinal truthful acold successful 2025, much than doubling nan $14.05 cardinal raised complete nan aforesaid play successful 2024, according to Dealogic.

With its nationalist debut, Pine Labs plans to support widening its geographic footprint while deepening its beingness successful India pinch caller products and services aimed astatine nan country’s quickly expanding, internet-driven user base.

“Our halfway business will support expanding. Our moats will beryllium strengthened, and margins will grow,” Rau said.