Payment technology company Pine Labs, backed by PayPal and Mastercard, garnered strong investor interest on its market debut Friday. Despite lowering its valuation for the $440 million initial public offering (IPO), shares closed 14% higher on the first trading day. The listing marks India's second-largest fintech IPO this year, following online brokerage Groww's $750 million offering earlier this week, which set the record for India's biggest fintech listing in 2025.
Pine Labs priced its shares at 221 Indian rupees, opened at 242 rupees, peaked at 284 rupees intraday, and settled at 252 rupees. This gives the Gurugram-based company a market capitalization of 289 billion rupees ($3.3 billion). While lower than its $5 billion-plus valuation during a 2022 private funding round, the successful listing demonstrates investor confidence in India's push to globalize its fintech model.
Founded in 1998, Pine Labs has steadily expanded beyond India and now operates across 20 markets including Malaysia, Singapore, Australia, the UAE, the US, and parts of Africa. Starting as a point-of-sale terminal provider, it has evolved into a comprehensive payments platform offering bill payments, account aggregation, merchant services, and acquiring solutions.
In India, Pine Labs competes with Razorpay, Paytm, and Walmart-owned PhonePe. The company turned profitable in Q2 (June quarter) with net income of 47.86 million rupees ($540,000), reversing a 278.89 million rupee loss from the same period last year. Operating revenue grew 17.9% year-over-year to 6.16 billion rupees ($69 million), with international operations contributing 15% of total revenue at 943.25 million rupees ($11 million), up from 795.97 million rupees a year earlier.
"We'll never lose our startup mentality," said CEO Amrish Rau during the listing ceremony, "but now as a public company, we'll retire the 'startup' label internally."
The IPO saw partial exits by existing investors including Peak XV Capital, Temasek Holdings, PayPal, and Mastercard. "Pine Labs never competed on price," said Peak XV Managing Director Shailendra Singh. "It differentiated through superior service solutions. We believe in its compounding growth potential given its strong business moat, which shaped our patient approach to ecosystem development."
Peak XV, which spun off from Sequoia Capital in 2023, first invested in Pine Labs during the 2009 global financial crisis. This week marked two partial exits for Peak XV, with portfolio companies Pine Labs and Groww both listing successfully in India. Groww's shares opened 12% above their 100-rupee offer price and closed 29% higher.
Pine Labs' listing reflects India's booming IPO market across sectors from technology and fintech to e-commerce and manufacturing. Driving factors include robust domestic investor demand, accommodative interest rates, and regulatory incentives. Dealogic data shows financial services dominate global IPOs in 2025, raising $34.34 billion year-to-date—more than double the $14.05 billion during the same period in 2024.
Proceeds will fund Pine Labs' global expansion and new product launches in India's rapidly growing digital consumer market. "Our core business will keep scaling, moats will deepen, and margins will improve," Rau stated.