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Indian fintech firm Pine Labs is planning a domestic initial public offering in the second half of 2025 and is undeterred by the current weak market conditions, chief executive Amrish Rau said.

Pine Labs, whose main backer is venture capital firm Peak XV, offers full stack payment solutions including point-of-sale machines to merchants for card payments and competes with Paytm and Walmart's PhonePe.

India's stock markets have been performing poorly with losses of over $1 trillion in market capitalisation due to negative investor sentiment.

But Pine Labs is unfazed, and CEO Rau said: "we would want to go for an IPO in the second half of this year."

"I really shouldn't be swayed by market conditions and should be more focused on building a company which is here to last for long," he told Reuters in an interview on Monday.

"Because of markets, if the IPO timing changes, honestly, it's not going to be an earth-shattering situation. In general, I think we are ready for public markets," he added.

Pine Labs is planning a $1 billion IPO, a source with direct knowledge of the matter said, adding that it will be a mix of raising fresh capital and some existing investors selling their stakes. Rau declined to comment on the IPO size.

If the issue goes through, it would be the second largest fintech IPO in India after Paytm's $2.5 billion listing in 2021.

Last valued at $5 billion when it raised funds in 2022 and with investors including PayPal, Mastercard and Singapore's Temasek, Pine Labs is diversifying its income streams and focusing on tech solutions for banks, fintechs and corporates, Rau said.

Pine Labs is awaiting regulatory clearance to move its domicile to India.

It posted revenue of $200.4 million in 2023-24, a marginal increase from $189.72 million in 2022-23, with losses widening to $40.68 million from $27.24 million over the same period, as per its financial statements.