Pine Labs’ IPO values firm at $2.7 Bn; Peak XV eyes 40X return while Invesco stares at loss

Fintech unicorn Pine Labs has set its IPO price band at Rs 210-221 per share, valuing the company at around Rs 23,573 crore ($2.7 billion). The much-anticipated public issue offers stellar exits for early backers but leaves some late-stage investors with little to celebrate.

According to Entrackr’s analysis, Peak XV Partners (formerly Sequoia Capital India) will walk away with the biggest windfall, a 39.5X return on its investment. Madison India and Sofina Ventures also stand to book handsome gains of 5.6X and 4.7X, respectively.

In contrast, investors who entered during later funding rounds will see far smaller gains or even losses. Temasek and PayPal are expected to make under 3X on their stakes, while Mastercard may clock a 1.7X return. Invesco, which came in at one of the highest valuations, is likely to incur a loss on its investment as the IPO pricing falls below its entry level. Lone Cascade may barely break even with a 1.2X multiple.

During the OFS, Peak XV Partners will pocket around Rs 508.4 crore, followed by Actis (Rs 194.7 crore), Temasek (Rs 193.3 crore), PayPal (Rs 150 crore), and Mastercard (Rs 130.9 crore). Others, including Invesco (Rs 71 crore), Madison India (Rs 66.7 crore), Lone Cascade (Rs 53 crore), Sofina Ventures (Rs 44.2 crore), and founder Lokvir Kapoor (Rs 49.1 crore) will also partially cash out.

The implied valuation of $2.7 billion marks a steep drop from the $6 billion target Pine Labs was reportedly chasing in 2022. The correction reflects a broader market reset in late-stage fintech valuations as investors prioritize profitability and stable cash flows over hyper-growth narratives.

The company’s Rs 3,900 crore IPO comprises a fresh issue of Rs 2,080 crore and an offer for sale (OFS) of 8.23 crore shares by existing shareholders. Proceeds from the fresh issue will be used for debt repayment, technology upgrades, and international expansion.

As per the RHP, Peak XV is the largest external shareholder with a 20.25% stake, followed by Temasek (7.06%) and PayPal (5.98%). Actis Pine Labs Investment holds 5.75%, while Mastercard and Alpha Wave own 5.22% and 3.37%, respectively.

Pine Labs reported a 28.5% year-on-year growth in revenue to Rs 2,274 crore in FY25 from Rs 1,769 crore in FY24, while net losses declined by 57% to Rs 145 crore during the same period. Notably, in the first quarter of FY26, the company turned profitable, posting a net profit of Rs 4.7 crore on a revenue of Rs 616 crore.

If successful, the listing could provide much-needed momentum to India’s fintech IPO pipeline, including players like Razorpay and Cashfree, though future offerings are likely to chase more realistic valuations aligned with today’s tempered investor sentiment.