Pine Labs, a Gurugram-based fintech company, was founded in 1998. It’s recently made big waves in the public market with its initial public offering (IPO). Even with some valuation adjustment, the company received a great reception from investors, raising nearly $440 million. The IPO debuted its equity at ₹242. On debut, it flew up to a high of ₹284 before closing at ₹252, above its issue price of ₹221.
The firm has an aggressive presence in 20 overseas markets. These are Malaysia, Singapore, Australia, the entire UAE, the U.S., and many areas of Africa. In India, Pine Labs faces competition from major players such as Razorpay, Paytm, and PhonePe, which is owned by Walmart.
Pine Labs has just announced their third-quarter operating results. It had eye-popping year-over-year, 17.9% revenue growth, reaching ₹6.16 billion—about $69 million. The company’s international operations made up around 15% of total revenue. In fact, revenue from international operations expanded to ₹943.25 million (approximately $11 million), an increase from ₹795.97 million last fiscal year.
Pine Labs made a profit itself, for the first time, in the June quarter of this fiscal year. The company recorded a net profit of ₹47.86 million, just over $540,000. This is a huge positive reversal from the ₹278.89 million net loss it announced for the corresponding quarter last year. This change in financial fortunes is an important inflection point for the company. Today, it is making its way forward as a publicly traded company.
Amrish Rau, CEO of Pine Labs, struck an optimistic note on the company’s prospects at the public listing ceremony.
“We will never stop being a startup,” – Amrish Rau, CEO of Pine Labs.
With its impressive financial results and unshakeable commitment to progress, Pine Labs finds itself in a unique position within an extremely competitive landscape. Peak XV Partners’ managing director Shailendra Singh noted that it was Pine Labs’ emphasis on the long game. Then they go all-in on value and innovation—not price—competition.
“Our core business will keep expanding. Our moats will be strengthened, and margins will grow.”
The strong IPO and warm reception by the market is a clear sign of investor faith in Pine Labs’ business model and the leadership at the helm. The company’s market capitalization now stands at approximately ₹289 billion (around $3.3 billion), underscoring its significant presence in the fintech sector.
For now though, Pine Labs is in the thick of charting its post-public growth path. It hopes to solidify its standing within India, but more importantly, enhance its influence on the world stage. Stakeholders on all sides are keeping a very keen eye on the company’s recent public offering. Most importantly, they are anxious to see how it can spur even more growth through innovation and expansion.
As Pine Labs continues to navigate its growth trajectory post-IPO, it aims to solidify its position both in India and on the global stage. With a commitment to innovation and expansion, stakeholders are watching closely to see how the company capitalizes on its recent public offering to drive further growth.
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