Pine Labs, Indian digital payments unicorn’s public offering maybe sooner than expected. The company has converted into a public company, a mandatory step required for a startup to do before filing for an initial public offering (IPO).
In a resolution passed by the company, it is converting its Singapore-based holding entity from private to public, regulatory filings show. The fintech company’s parent – Pine Labs Pte –based in Singapore has converted into Pine Labs Limited.
Pine Lab Eyes US listing
According to reports, the point of sale (PoS) and merchant commerce solution provider is eyeing $5 Bn valuations with the IPO and is likely to list itself in the US next year. However, its conversion into a public company indicates that its IPO preparation has started to gather momentum.
If media reports and sources are believed, Pine Labs is likely to list in the US in the next 10-12 months. Its conversion from a private company to a public one has come weeks after closing its $600 million funding round at a $3.5 billion valuation.
Pine Labs was the first Indian startup to have entered the unicorn club in 2020
The startup raised $285 million in May and an additional $315 million in July. Sources further said the round was the last private financing for the company.
The company would become the fourth fintech company after Paytm, Policybazaar and Mobikwik to get closer to a public listing. The Vijay Shekhar Sharma-led firm is eyeing one of the biggest IPOs at a $25-30 billion valuation.
It’s worth noting that the fintech also facilitated a partial exit of its early and major backer Sequoia Capital via a secondary deal. The VC firm had transferred $225-$230 million worth of shares to seven investors, including Marshall Wace, Duro Capital, Moore Strategic Ventures and Lenarco Limited.
Pine Labs joins the trend of Indian startups filing for IPO
Founded in 1998 by Lokvir Kapoor, Pine Labs allows businesses to accept online and offline digital transactions. Its cloud-based platform helps over 140,000 merchants, 3.5 lakh PoS (point of sale) terminals across 3,700 cities and towns in India and Malaysia.
About 15 major banks, seven financial organizations and more than 100 brands are a part of Pine Lab’s platform that carries out payments worth $30 billion every year.
In FY20, the startup posted revenue of INR 701.62 Cr, an incremental rise of 43 percent from INR 491.29 Cr it posted in FY19. However, its net loss broadened to INR 57.72 Cr in FY20, a 1,654 percent increase from INR 3.29 Cr. Pine Labs saw its expenditures rise to INR 765.61 Cr in FY 20, against INR 490.86 Cr in FY 19. Pine Labs is yet to file its financial statements for FY21.