Pine Labs, a fintech unicorn, has set an IPO price band of Rs 210-221 per share, which values the company at about Rs 23,573 crore ($2.7 billion). The much-anticipated public offering provides excellent exits for early supporters while leaving some late-stage investors with little to celebrate.

According to reports, Peak XV Partners (previously Sequoia Capital India) will benefit the most, with a 39.5X return on investment. Madison India and Sofina Ventures are also expected to see hefty increases of 5.6X and 4.7X, respectively.

Key Highlights

• Pine Labs IPO values firm at roughly $2.7 billion, far below its earlier $6 billion target.
• Early backer Peak XV Partners stands to achieve ~40× return, while Invesco likely books a loss on its stake. 

Investors that participated in later investment rounds, on the other hand, will see much lower gains, if any at all. Temasek and PayPal are likely to profit less than 3X on their investments, while Mastercard may earn 1.7X. As the IPO pricing drops below its entry level, Invesco, which had one of the highest values, is probably going to lose money on its investment. With a 1.2X multiple, Lone Cascade might hardly break even.

Peak XV Partners will earn around Rs 508.4 crore during the OFS, followed by Actis (Rs 194.7 crore), Temasek (Rs 193.3 crore), PayPal (Rs 150 crore), and Mastercard (Rs 130.9 crore). Other companies that will cash out in part include 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).

From the $6 billion aim Pine Labs was allegedly pursuing in 2022, the projected valuation of $2.7 billion represents a significant decline. As investors place a higher value on profitability and steady cash flows than on hyper-growth storylines, the correction reflects a larger market reset in late-stage fintech valuations.

A new issue of Rs 2,080 crore and an offer for sale (OFS) of 8.23 crore shares by current shareholders make up the company's Rs 3,900 crore initial public offering (IPO). The new issue's proceeds will go toward worldwide expansion, technology advancements, and debt reduction.

With a 20.25% holding, Peak XV is the biggest external stakeholder, according to the RHP, followed by Temasek (7.06%) and PayPal (5.98%). Mastercard and Alpha Wave own 5.22% and 3.37%, respectively, while Actis Pine Labs Investment owns 5.75%.

Also Read: Payments Platform Pine Labs Turns Public - Assigns Independent Directors

While net losses fell by 57% to Rs 145 crore over the same period, Pine Labs reported a 28.5% year-over-year increase in revenue to Rs 2,274 crore in FY25 from Rs 1,769 crore in FY24. Notably, the business generated a profit in the first quarter of FY26, reporting a net profit of Rs 4.7 crore on Rs 616 crore in revenue.

If the listing is successful, it might provide India's fintech IPO pipeline—which includes companies like Razorpay and Cashfree—much-needed momentum. However, subsequent offers are probably going to aim for more reasonable prices in line with the current muted investor attitude.