Pine Labs, one of India’s leading fintech startups, has posted a profit after years of losses — and just in time for its much-awaited IPO.
In the first nine months of FY25, Pine Labs earned a net profit of ₹26.1 crore. That’s a big turnaround from FY24, when the company reported a ₹187 crore loss. The reason? No massive ESOP (employee stock option) payouts this year. In FY24, share-based payments alone cost ₹234 crore — more than the total loss.
But it’s not just about cutting costs. Pine Labs saw strong revenue growth too. Its total revenue jumped 23% year-on-year, reaching ₹1,208 crore, thanks to more transaction volume and growing services like Device-as-a-Service and value-added offerings.
According to its draft red herring prospectus (DRHP) filed with SEBI, Pine Labs now wants to raise ₹2,600 crore (~$304 million) via fresh shares. Big names like PayPal, Mastercard, and Peak XV Partners will also sell part of their stakes.
A Two-Engine Business Model
Pine Labs earns from two key areas. First is its Digital Infrastructure and Transaction Platform. This helps merchants accept payments, offer EMI checkouts, and use smart tools like billing and loyalty tracking. This vertical brought in ₹1,149 crore — 76% of total revenue in 9M FY25.
The second is its Issuing and Acquiring Platform, where it works with large businesses to issue gift cards, loyalty vouchers, and prepaid products. This side, including Qwikcilver, earned ₹428 crore — up 27% from last year.
In total, Pine Labs processed 3.97 billion transactions worth ₹2.85 lakh crore, across 9.2 lakh merchants during the same period.
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India First, But Going Global
India still makes up over 83% of revenue — ₹1,005 crore — but the global push is clear. Pine Labs is now active in Singapore, Malaysia, UAE, and Saudi Arabia. With ₹60 crore earmarked for expansion, the IPO funds will fuel international growth through arms like Qwikcilver Singapore and Pine Labs UAE.
It’s also focusing on services like EMI at checkout and loyalty programs for mid-to-large merchants — solutions that work well across markets.
The Road Ahead
Despite the profit, risks remain. In FY24, Pine Labs had negative cash flow of ₹35.5 crore. It also faces fierce competition from players like Paytm, Razorpay, and PhonePe, who dominate various parts of the payments game. UPI is another challenge, especially for small-ticket transactions where PoS devices are slowly losing ground.
Still, Pine Labs is betting on its hybrid model — strong PoS network and digital-first loyalty tools — to stay relevant and grow.
If all goes well, the IPO could give Pine Labs the push it needs to go from a local hero to a global fintech name.
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