Pine Labs Ltd (MAINBOARD) (TENTATIVE DATES)

Pine Labs IPO Details as per DRHP

Key Offerings

Smart POS Devices: Enable merchants to accept multiple forms of payment, including credit and debit cards, UPI, mobile wallets, and EMIs, through advanced cloud-connected terminals.

Buy Now Pay Later (BNPL): Provides instant EMI and deferred payment solutions at the point of sale, boosting consumer affordability and sales conversions.

Merchant Financing: Offers short-term working capital loans to merchants through partnerships with financial institutions.

Loyalty and Gift Solutions: Through its subsidiary Qwikcilver, Pine Labs enables digital gift cards, loyalty programs, and promotional campaigns for brands and retailers.

E-commerce and Online Payment Tools: Provides APIs and payment gateway services that support online businesses, digital stores, and mobile applications

Objects of the Issue

The net proceeds from the IPO are proposed to be utilized for:

Repayment or prepayment of certain borrowings availed by the Company and its subsidiaries (₹870 crore)

Investment in subsidiaries including Qwikcilver Singapore, Pine Payment Solutions Malaysia, and Pine Labs UAE to expand operations outside India (₹60 crore);

Investment in IT assets, cloud infrastructure, and technology development initiatives, including procurement of digital commerce platforms (₹760 crore); and

General corporate purposes and unidentified inorganic acquisitions aimed at strengthening Pine Labs’ ecosystem that connects merchants, brands, enterprises, and financial institutions.

Strength

Comprehensive Fintech Ecosystem:Integrates merchants, consumer brands, and financial institutions to enable seamless commerce transactions.

Full-Stack, Cloud-Based Platform:Scalable and secure infrastructure capable of handling high transaction volumes across geographies.

Strong Partnerships:Deep relationships with leading merchants, brands, and financial institutions, driving repeat business and cross-platform growth.

Weakness

Losses in Recent Years: The company recorded a loss of ₹1,871.70 million in FY 2024, and losses of ₹1,165.87 million and ₹3,419.03 million for the nine months ended December 31, 2024, and FY 2024, respectively (based on pro forma financials). There is no assurance of profitability in the near future.

Negative Cash Flows: Net cash used in operating activities was ₹(355.00) million in FY 2024, indicating potential liquidity risks if negative trends persist.

Customer Retention Risk: The company’s growth depends on retaining existing merchants and acquiring new ones. Any decline in customer engagement or loss of major clients could adversely affect operations and revenues.