| Price | Lot Size | Issue Date | Issue Size |
|---|---|---|---|
| ₹210 to ₹221 | 67 | 07th Nov, 2025 –11th Nov, 2025 | ₹3,899.91 Cr |
Pine Labs Ltd
Pine Labs Ltd. operates as a leading technology-driven enabler of digital commerce, offering a comprehensive suite of digital payment and issuing solutions for merchants, consumer brands, enterprises, and financial institutions. Leveraging its advanced, scalable technology infrastructure, the company facilitates the digital transformation of businesses across India and an expanding international footprint spanning Malaysia, UAE, Singapore, Australia, the US, and Africa. Its core business is structured around two integrated platforms, the Digital Infrastructure and Transaction Platform and the Issuing and Acquiring Platform. The former encompasses in-store and online payment systems, affordability solutions, and value-added services (VAS) such as dynamic currency conversion and transaction processing, while also providing FinTech infrastructure and software applications. The latter platform supports the issuance, processing, and distribution of prepaid and engagement solutions, underpinned by a unified cloud-based processing architecture that seamlessly connects issuers and acquirers. Through these platforms, the company plays a pivotal role in digitizing and securing commerce by simplifying transaction flows and enabling businesses across sectors to enhance customer engagement and consumption in an increasingly digital economy. In FY25, the company processed payments totalling Rs. 11,425 billion in Gross Transaction value and 5.68 billion transactions on its own platform. As of June 30, 2025, the company has 9,88,304 merchants, 716 consumer brands and enterprises and 177 financial institutions as their customers.
Objective of the Pine Labs Ltd IPO
The company proposes to utilise net proceeds from the issue towards the following objects:
- Repayment/prepayment, in full or in part, of certain borrowings availed of by the company;
- Investment in its subsidiaries, namely Qwikcilver Singapore, Pine Payment Solutions, Malaysia and Pine Labs UAE for expanding its presence outside India;
- Investment in IT assets, expenditure towards cloud infrastructure, procurement of digital check-out points (“DCP”) and technology development initiatives; and
- General corporate purposes and unidentified inorganic acquisitions.
Rationale To Pine Labs Ltd IPO
Integrated ecosystem enabling network effects and scalable growth
Pine Labs Ltd. operates a rapidly expanding digital commerce ecosystem that directly connects multiple stakeholders, including merchants, consumer brands and enterprises, financial institutions, consumers, and third-party software partners. The growing density of this ecosystem enhances the platform’s overall efficiency and value proposition, as increased participation drives higher transaction volumes, richer data insights, and improved process automation. Each new participant strengthens the platform’s utility by contributing to a more integrated, one-stop commerce experience, which in turn attracts additional merchants, consumers, and partners, creating a self-reinforcing cycle of network effects. This virtuous loop not only drives scale but also broadens the company’s monetization opportunities across various participant categories. The ecosystem has shown consistent densification since FY22, reflecting strong adoption and engagement trends. As of June 30, 2025, the company’s ecosystem comprised 988,304 merchants, 716 consumer brands and enterprises, and 177 financial institutions, compared to 530,318 merchants, 444 consumer brands and enterprises, and 80 financial institutions as of March 31, 2023, highlighting robust and sustained ecosystem expansion.
Deep strategic partnerships with large merchants, brands, and financial institutions strengthens platform stickiness
The company has established a strong domestic presence complemented by a rapidly expanding international footprint across its ecosystem of partners. As of June 30, 2025, it served a diversified merchant base across key verticals such as retail, e-commerce, restaurants, consumer electronics, healthcare, travel, and hospitality, alongside deep relationships with banks, financial institutions, fintechs, and technology companies. Over time, the company has evolved from an in-store digital payments provider to a comprehensive digital commerce enabler, offering a full suite of solutions including multi-issuer affordability platforms, full-stack issuing capabilities, merchant dashboards, spend analytics, and loyalty programs. Its ability to continuously expand its offerings has strengthened long-term client relationships with marquee partners such as Croma and HDFC Bank, many of which span over a decade. This breadth of partnerships and product diversification underpins the company’s high customer retention, recurring revenue visibility, and cross-selling potential, positioning it well for sustained growth in both domestic and emerging international markets.
Valuation of Pine Labs Ltd IPO
Pine Labs Ltd. offers exposure to India’s secular digitalization trend with a proven business model generating 20-25% annual revenue growth, improving operational margins, and a clear path to profitable growth. Management’s focus on technology monetization rather than volume-driven MDR (Merchant Discount Rate) compression creates a more defensible business model than peers. The Indian digital payment market is projected to grow from Rs. 111.8 trillion in FY25 to Rs. 278-302 trillion by FY29, registering an approximate 25.6-28.2% CAGR during the period. This massive expansion provides substantial headroom for Pine Labs to scale up its business. Currently, 15% of revenues come from international markets, which grew 58% year-on-year. Management targets Southeast Asia and the Middle East as priority markets, with ambition to reach 25% of revenue from overseas markets by 2027. On the financial front, Pine Labs Ltd. demonstrated a strong turnaround, marked by significant growth and improved profitability. The company’s EBITDA margin improved significantly, rising to 19.6% in Q1FY26 from negative levels in FY24, reflecting a strong turnaround in operational performance. In comparison, revenue grew at a healthy CAGR of 19% over the same period, reflecting both business scalability and margin enhancement. Moreover, Pine Labs’ swift transition from an annual loss of Rs. 342 crores in FY24 to achieving profitability in Q1FY26 underscores its substantial operational leverage and disciplined cost management. From a valuation standpoint, at the upper end of the price band, the issue is valued at an implied Market Cap/Sales multiple of 11.2x based on FY25 revenues. Given India’s fast-growing digital payments sector, robust profitability trajectory, efficient capital allocation, and global scaling potential, we recommend a “SUBSCRIBE” rating to the issue from a medium- to long-term perspective.
What is the Pine Labs Ltd IPO?
The initial public offer (IPO) of Pine Labs Ltd offers an early investment opportunity in Pine Labs Ltd . A stock market investor can buy Pine Labs Ltd IPO shares by applying in IPO before All Pine Labs Ltd shares get listed at the stock exchanges. An investor could invest in Pine Labs Ltd IPO for short term listing gain or a long term.
How to apply for the Pine Labs Ltd IPO through StoxBox?
To apply for the Pine Labs Ltd IPO through StoxBox one can apply from the website and also from the app. Click here
When will the Pine Labs Ltd IPO open?
Pine Labs Ltd IPO is opening on 07th Nov 2025. Apply Now
What is the lot size of the Pine Labs Ltd IPO?
The Lot Size of Pine Labs Ltd IPO is 67 equity shares. Login to your account now.
When is the Pine Labs Ltd allotment date?
The allotment Date for Pine Labs Ltd IPO is 12th Nov 2025. Login to your account now.
When is the Pine Labs Ltd IPO listing date?
The listing Date for Pine Labs Ltd IPO is 14th Nov 2025. Login to your account now
What is the minimum investment required for the Pine Labs Ltd IPO?
In the Retail segment the minimum investment required is Rs. 14,807. Login to your account now
What is the maximum investment allowed for the Pine Labs Ltd IPO?
In the Retail segment the maximum investment requirement is Rs. 1,92,491. Login to your account now
What are the risks associated with investing in the Pine Labs Ltd IPO?
The company reported a net loss of Rs. 145 crores in FY25, primarily driven by elevated operating expenses, which accounted for 104.3% of total income. The sustained cost intensity reflects continued investments in technology, international expansion, and ecosystem development. While the company remains in a growth and scale-building phase, its path to profitability will depend on operating leverage, cost optimization, and monetization of its expanding ecosystem. However, the persistence of losses in the near term remains a key financial risk.
The company reported a negative operating cash flow of Rs. 281 crores for the three months ended June 30, 2025, reflecting continued working capital pressures and high operating expenditure during its expansion phase. The negative cash generation underscores the company’s ongoing investment in technology infrastructure, ecosystem growth, and international operations. While these investments are expected to drive long-term scalability and revenue growth, sustained negative operating cash flows in the near term represent a key monitorable for improving liquidity and profitability.
The company’s growth trajectory remains dependent on its ability to retain existing customers and expand its client base across merchants, consumer brands, and financial institutions. Given the competitive intensity in the digital payments and fintech ecosystem, customer retention and acquisition are critical to sustaining transaction volumes and revenue momentum. Any decline in customer engagement or slowdown in new client onboarding could adversely impact the company’s business performance, financial health, and long-term scalability.
When will the Pine Labs Ltd IPO shares be credited to my Demat account?
The Pine Labs LtdIPO be credited to the account on allotment date which is 14th Nov 2025. Login to your account now
Where can I find the Pine Labs Ltd IPO prospectus?
The prospectus of Pine Labs Ltd IPO prospectus can be find on the website of SEBI, NSE and BSE
