Pine Labs IPO
Pine Labs IPO Price Range is ₹210 - ₹221, with a minimum investment of ₹14,807 for 67 shares per lot.
Subscription Rate
2.46x
as on 11 Nov 2025, 04:23PM IST
Minimum Investment
₹14,807
/ 67 shares
IPO Status
Price Band
₹210 - ₹221
Bidding Dates
Nov 7, 2025 - Nov 11, 2025
Issue Size
₹3,899.91 Cr
Lot Size
67 shares
Min Investment
₹14,807
Listing Exchange
BSE
IPO Doc
Pine Labs IPO Application Timeline
IPO Subscription Status
as on 11 Nov 2025, 04:23PM IST
IPO subscribed over
🚀 2.46x
This IPO has been subscribed by 1.201x in the retail category and 4x in the QIB category.
Subscription Rate
| Total Subscription | 2.46x |
| Retail Individual Investors | 1.201x |
| Qualified Institutional Buyers | 4x |
| Non Institutional Investors | 0.294x |
Pine Labs IPO: What’s in It for Investors?
Pine Labs is set to raise nearly ₹3,900 crore through its IPO. This short video breaks down how Pine Labs makes money, its business model, growth story, and more.
Objectives of IPO
- The initial public offering (IPO) is structured to raise a maximum total amount aggregating up to ₹3,899.91 crore. This total offer consists of two parts: a fresh issue and an offer for sale (OFS). The fresh issue portion aggregates up to ₹2,080 crore, and the net proceeds from this will be received and utilized by the company.
- The offer for sale involves the sale of up to 82,348,779 equity shares aggregating up to ₹1,819.91 crore by the selling shareholders. Notable investors participating as selling shareholders include Peak XV Partners Pine Investment Holdings, Actis Pine Labs Investment Holdings Limited, and individual shareholder Lokvir Kapoor.
- The company proposes to utilize the IPO funds from the fresh issue towards repayment of borrowings. The amount allocated is ₹532 crore. This target is set against total borrowings of ₹888.74 crore as of June 30, 2025. The total outstanding borrowings (secured term loans and working capital facilities) as of August 31, 2025, were estimated at ₹836.64 crore. As of June 30, 2025, its total borrowings represented 25% of its total equity. This objective includes repaying certain loans from Axis Bank Limited and Citibank N.A., which are affiliates of the Book Running Lead Managers.
- An estimated ₹60 crore is set aside for investment in its subsidiaries for expanding its presence outside India. This funding is designated for three subsidiaries: Qwikcilver Singapore, Pine Payment Solutions, Malaysia, and Pine Labs UAE. This will support international expansion by recruiting key talent and enhancing technology infrastructure. For the three months ended June 30, 2025, revenue from external customers outside India was ₹94.33 crore, which was 15.31% of the total revenue from operations.
- ₹760 crore are allocated for the investment in IT assets, expenditure towards cloud infrastructure, procurement of Digital Check-out Points (DCPs), and technology development initiatives. This is broken down into three sub-parts, including (a) investment in IT assets and expenditure towards cloud infrastructure: ₹230 crore. This budget includes purchasing IT assets like 2,000 Dell Pro 14 PC14255 computers at an estimated aggregate cost of ₹16 crore. (b) expenditure towards procurement of DCPs: ₹430 crore. These devices include Android-based devices, soundboxes, and NFC-enabled terminals, intended to enhance market penetration. A portion of ₹169.59 crore is planned as an investment into the subsidiary Synergistic for DCP procurement. (c) expenditure towards technology development initiatives: ₹100 crore. This investment will focus on strengthening teams through recruitment in product and technology, emphasizing areas such as AI and data-driven personalization.
- The remaining amount will be utilized for general corporate purposes and unidentified inorganic acquisitions. General corporate purposes cover operating expenses like lease expenses, payment of taxes, consultant fees, and employee costs. The specific targets for inorganic growth through acquisitions are not yet identified.
Financial Performance of Pine Labs
Total revenue demonstrated solid growth, rising from ₹1,690.4 crore in FY23 to ₹2,327.1 crore in FY25, corresponding to a 17.3% CAGR. The growth accelerated significantly in the most recent periods, achieving a 22.07% increase from Q1 FY25 (₹535 crore) to Q1 FY26 (₹653.1 crore). This revenue expansion was primarily driven by increases in both the Digital Infrastructure and Transaction Platform (DITP) and the Issuing and Acquiring Platform, supported by an increasing number of Digital Check-out Points (DCPs) and significant growth in affordability solutions transaction volumes.
Historically, the company incurred substantial net losses, peaking at ₹341.9 crore in FY24. However, the business achieved a major turnaround in Q1 FY26, reporting a profit of ₹4.8 crore, reversing the loss of ₹27.9 crore in the comparable quarter of the previous year. This profit shift was largely a result of the 17.90% increase in overall income, coupled with a sharp 194.99% increase in other income, which included a gain recognized from a liability written back on the settlement of purchase consideration payable.
Operating efficiency, measured by adjusted EBITDA margin, recovered strongly, rising from a low of 8.94% in FY24 to 15.68% in FY25, and peaking at 19.57% in Q1 FY26. This recovery was mainly driven by robust revenue growth and a decrease in depreciation and amortisation expenses (which fell by 19.48% in FY25 due to the completion of the useful life of certain acquired intangibles). The contribution margin remained consistently high, ranging from 80.18% in FY23 to 76.02% in FY25, reflecting stable gross unit economics.
Operational scale expanded rapidly, with Platform GTV soaring from ₹6,08,436 crore in FY24 to ₹11,42,497 crore in FY25. This massive growth was achieved by consistently expanding the ecosystem: the number of merchants grew from 5.3 lakh in FY23 to 9.54 lakh in FY25. The corresponding number of transactions nearly doubled, rising from 344 crore in FY24 to 568 crore in FY25.
Total assets increased steadily at a 7% CAGR, reaching ₹10,715.7 crore by FY25. However, the company’s total borrowings also grew substantially at a high CAGR of 58.7%, increasing from ₹329.5 crore in FY23 to ₹888.7 crore by Q1 FY 2026. This increased leverage, which raised the debt-to-equity ratio from 8.81% to 24.93%, was primarily utilized to finance key business needs, including working capital requirements and funding for the purchase of Digital Check-out Points.
Strengths and Risks
Strengths
It has demonstrated strong operational efficiency, reporting an adjusted EBITDA of ₹356.72 crore in FY25, corresponding to an adjusted EBITDA margin of 15.68%, against 8.94% reported in FY24. This further improved to 19.57% in Q1 FY26. This indicates high operational leverage.
The platform handles substantial volumes, processing 568 crore transactions in FY25 with a platform gross transaction value (GTV) of ₹11,42,497 crore, reflecting proven scale and high adoption.
The model includes recurring revenue streams from hardware usage, generating an average monthly revenue of ₹380.08 per Digital Check-out Point (DCP) in FY25. This subscription-based revenue model supports stability independent of volatile transaction fees.
Its success is built on a deep network effect, connecting 9.88 lakh merchants, 716 consumer brands, and 177 financial institutions as of June 30, 2025. This wide ecosystem strengthens its competitive position.
The company achieved a Q1 FY26 profit of ₹4.79 crore, reversing a ₹27.9 crore loss in Q1 FY25. However, this profit was significantly supported by a ₹9.64 crore tax credit. On a yearly basis, the losses of the company also improved from ₹265.1 crore in FY23 to ₹145.5 crore in FY25.
The business model maintains strong margins, with a contribution margin as a percentage of revenue from operations of 76.02% in FY25 and 77.90% for the three months ended June 30, 2025. This means the business keeps about ₹76 of every ₹100 revenue earned after paying direct operating costs, showing excellent cost control at the service level.
Risks
It has consistently reported net losses, including a loss of ₹145.49 crore in FY25. Its total expenses exceeded total income by 4.29% in FY25, offering no assurance of sustained future profitability.
The company recently experienced significant negative cash flows from operations. Net cash used in operating activities was ₹281.19 crore for the three months ended June 30, 2025. Persistent negative cash flows could impair growth plans.
The company's reliance on debt has increased notably. Its ratio of total borrowings to total equity sharply increased from 8.81% in FY23 to 24.93% as of June 30, 2025, indicating a significant increase in financial leverage over the two years. The total borrowings increased from ₹329.5 crore in FY23 to ₹888.7 crore in Q1 FY26.
Revenue relies heavily on a small subset of customers; the top 10 customers accounted for 30.95% of revenue in FY25. The reduction or termination of business from any of these key customers could severely affect operations.
Its operations are directly regulated and inspected by the RBI and ReBIT. Non-compliance with dynamic FinTech and payment regulations could lead to substantial monetary penalties or the revocation of necessary licenses.
As of June 30, 2025, it faced ₹331.04 crore in contingent liabilities, which equates to 14.22% of its net worth. Should these liabilities, largely related to indirect tax matters, materialize, they would adversely impact its financial position.
The company substantially reduced its IPO size. The fresh issue is capped at ₹2,080 crore, a 20% cut from earlier plans. Furthermore, the offer for sale (OFS) was restricted to 82,348,779 shares, a 45% reduction. This strategic downsizing aligns with the necessity to access capital under Regulation 6(2), given its ₹145.5 crore loss in FY25.
How to Apply for Pine Labs IPO on INDmoney
- Download the INDmoney app and complete your KYC.
- Go to INDstocks → IPO, or just search “IPO”.
- Tap on Pine Labs IPO from the list of live IPOs.
- View key details like price band, lot size, and dates.
- Tap Apply Now and choose your number of lots.
- Use INDpay UPI for instant mandate tracking.
- Your funds will be blocked until the share allotment is finalized.
Listed Competitors of Pine Labs
Pine Labs Shareholding Pattern
| Public | 100% |
| Name | Stakeholding |
| Peak XV Partners | 20.25% |
| Macritchie Investments | 7.06% |
| PayPal | 5.98% |
| Actis Pine Labs Investment | 5.75% |
| Mastercard Asia/Pacific Pte. Ltd. | 5.22% |
| Alpha Wave Ventures | 3.37% |
| AIM Investment Funds (Invesco Investment Funds) | 2.83% |
| Madison India Opportunities | 2.66% |
| B. Amrish Rau | 2.47% |
| Lone Cascade, L.P. | 2.37% |
| Act Equity Holdings Pte Ltd. | 2% |
| Lokvir Kapoor | 1.96% |
| Sofina Ventures | 1.76% |
| Altimeter Growth Partners Fund | 1.67% |
| Marshall Wace Investment Strategies | 1.6% |
| Smallcap World Fund, Inc. | 1.6% |
| Lenarco Limited | 1.59% |
| SG Fintech Affiliates Pte Ltd | 1.43% |
| Lone Cypress, Ltd. | 1.31% |
| FID FDI 223, LLC | 1.3% |
| Baron Emerging Markets Fund | 1.28% |
| WF Asian Reconnaissance Fund Limited | 1.28% |
| Tree Line Asia Master Fund (Singapore) Pte Limited | 1.19% |
| Nordmann Lux S.C.SP (Vitruvian) | 1.07% |
| Sanjeev Kumar | 1% |
| Others | 20% |
About Pine Labs
Its target customers form an extensive ecosystem of nearly 9.88 lakh merchants, 716 consumer brands, and 177 financial institutions as of June 30, 2025. Its core business is based in India, which contributed 85.15% of its revenue from external customers in FY25, but it is also growing internationally in Malaysia, the UAE, Singapore, Australia, the U.S., and Africa. Operational scale is supported by its physical network, featuring 18.4 lakh Digital Check-out Points (DCPs) at merchant stores as of June 30, 2025. Cumulatively, it has issued over 367 crore prepaid cards, and it works with 40 credit partners to deliver point-of-purchase financing solutions.
The core value chain involves deploying cloud technology platforms and physical hardware (DCPs) at merchant locations to securely handle digital payments. This infrastructure integrates consumer brands and 40 credit partners, enabling them to offer consumer credit or prepaid products directly during the sale transaction. Revenue is primarily earned through recurring subscription fees (for hardware/services) and transaction fees (linked to the processed volume or value). The company’s future strategy focuses on scaling existing products, specifically targeting smaller merchants with UPI-first devices like the Mini DCP. It will also continue investing in technological enhancement, prioritizing AI, data-driven personalization, and FinTech infrastructure, while actively expanding its presence in high-growth global markets, particularly Southeast Asia and the Middle East.
For more details, visit here: www.pinelabs.com
Know more about Pine Labs
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Who are the competitors of Pine Labs?
Its competitors include both listed Indian and global Financial Technology (FinTech) firms. Key Indian peers are Paytm and Zaggle, while major global competitors include Adyen, Block, and Shopify. It competes by offering a comprehensive suite of integrated solutions.
How does Pine Labs make money?
It earns money primarily through recurring subscription-based fees and transaction-based fees charged to merchants, banks, and brands. It also sells Digital Check-out Points (DCPs) and related services. This generated a contribution margin of ₹1,728.88 crore in FY25.