IPO Note : Pine Labs Ltd by Motilal Oswal Wealth Management Ltd
India’s Leading Merchant Commerce and Payment Solutions Platform: Pine Labs (PLL) is a leading technology company, digitizing commerce through innovative payment and issuing solutions for merchants, brands, enterprises, and financial institutions. In FY25, it processed transactions for ~1 million merchants across India, Southeast Asia, and the Middle East, making it one of the top five in-store digital payment platforms. The merchant base has grown at a 34% CAGR over FY23–25, supported by India’s accelerating digital adoption. It’s diversified product portfolio includes PoS terminals, QR-based payments, online gateways (Plural), affordability solutions such as EMI and Pay Later, and fintech infrastructure offerings; providing merchants with an end-to-end digital payment ecosystem.
Comprehensive Ecosystem Across Payments, Lending, and Loyalty: PLL’s unified platform processes 5.7 billion transactions in FY25 (2.6 billion in FY23, a 48% CAGR) with GTV (Gross Transactional value) rising from Rs.4.4 trillion to Rs.11.45 trillion (a 61% CAGR). It is the largest digital affordability network at DCPs (Digital checkout points) in terms of total processed value. The platform integrates payments, lending, and loyalty, enabling merchants to manage transactions, offer financing, and engage customers seamlessly. PLL is connected with 28 issuers, managing 77+ million card accounts across 16+ countries, covering credit, debit, prepaid, and forex card solutions; reinforcing its position as a fullstack fintech enabler.
Global Expansion and Scalable SaaS-Led Model: PLL has established partnerships with 177 financial institutions, leveraging its cloud-native Plural suite, Qwikcilver gift card business, and merchant financing verticals to create high-margin, recurring revenue streams. PLL has rapidly strengthening its international footprint, operating over 16 global markets. It continues to pursue strategic acquisitions to accelerate entry into new geographies, leveraging its flexible, scalable, and cloud-based platform to deliver seamless payment and fintech solutions.
Issue Objective: The Rs.39 bn IPO comprises a fresh issue and OFS. Proceeds will primarily fund technological innovation, new product development, and global market expansion.
Valuation & View: PLL’s strong market leadership, diversified merchant base, and high-margin SaaS model create a durable growth runway in India’s rapidly digitizing payment landscape. It’s scalable platform, global footprint, and proven unit economics justify a strong long-term growth outlook. At 10.3x Price/Sales (Q1FY26 annualized), the stock trades at a slight premium to peers; however, its dominant position in payment solutions and scalable business model make it attractive from a long-term perspective. Hence, we recommend investors to ‘Subscribe’ to the issue.
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