Pine Labs gets warm welcome in market with $440M IPO in India despite valuation cut

Payment technology company Pine Labsbacked by PayPal and Mastercard, took public investors by storm on Friday, ending its first day of trading up 14% even after… Decrease its value For an IPO worth $440 million. This makes it the second largest Indian fintech listing this year after online brokerage Groww debuts to roughly $750 million Earlier this week.

The stock opened at INR 242 and rose to INR 284 before settling at INR 252, up from the issue price of INR 221, resulting in a market capitalization of INR 289 billion (about US$3.3 billion) for the Gurugram-based company.

It’s a step down from Pine Labs 2022 Private valuation of more than $5 billionbut it is still a clear signal that investors are supportive of India’s increasing efforts to spread its fintech model globally.

Founded in 1998, Pine Labs has been steadily expanding beyond India and now operates in 20 markets, including Malaysia, Singapore, Australia, UAE, US and some parts of Africa. What started as a point-of-sale terminal provider has since evolved into a broader payments platform that supports bill payments, account aggregation transactions, and a range of merchant and acquirer services.

In India, Pine Labs competes with the likes of Razorpay, Paytm and Walmart-owned PhonePe. The company became profitable in the June quarter, posting a net profit of INR 47.86 million (about US$540,000), compared to a loss of INR 278.89 million a year earlier. Revenue from operations rose 17.9% year-on-year to INR 6.16 billion (about US$69 million), while its overseas business contributed about 15% of total revenue, rising to INR 943.25 million (about US$11 million) from INR 795.97 million in the previous year.

“We will never stop being a startup,” Pine Labs CEO Amrish Rao said during the public listing ceremony. “Now that we are a listed company, (that word) will no longer be heard in our halls.”

Existing investors, including Peak XV Partners, Temasek Holdings, PayPal and Mastercard, were among those who sold part of their holdings in the public listing.

“Pine Labs never wanted to compete on price,” said Shailendra Singh, managing director at Peak XV Partners. “It has always wanted to compete for a superior offering. We know this company will continue to get worse because of having such strong moats in the business, and it has shaped our worldview on how to think about companies and be patient and allow ecosystems to mature.”

Peak partners xv, which It was separated from Sequoia Capital in 2023first invested in Pine Labs in 2009 amid the global financial crisis. The venture capital firm is also witnessing back-to-back partial public exits this week, with Pine Labs being the second of its portfolio company to list after Groww, which debuted on Indian bourses up 12% and closed its first trading day 29% above its issue price of Rs 100.

Pine Labs’ market debut is part of a broader wave, as India’s public listing drive accelerates. From technology and fintech to e-commerce and manufacturing, more startups are choosing to go public – driven by strong domestic investor appetite, easing interest rate conditions, and regulatory pushes to boost listings. Globally, finance It was the top sector for IPO This year, with $34.34 billion in IPOs so far in 2025, more than double the $14.05 billion raised during the same period in 2024, according to Dealogic.

With its public debut, Pine Labs plans to further expand its geographic footprint while deepening its presence in India with new products and services targeting the country’s rapidly expanding, internet-reliant consumer base.

“Our core businesses will continue to expand. Our moats will be strengthened, and our margins will grow,” Rao said.