Asia-based digital payments provider, Pine Labs, is preparing for a listing in the US and is expected to fetch around $500 million. Sources familiar with the matter said that the company has confidentially filed the papers with the US Securities and Exchange Commission.
The Temasek and Mastercard-backed company’s listing for an initial public offering (IPO) in New York as early as the first half of this year could give it a valuation of about $5.5 billion to $7 billion
Goldman Sachs Group Inc and Morgan Stanley are the lead banks for the deal. Discussions are on and the issue size and timing details are subject to change. However, representatives of the Singapore-based Pine Labs and Goldman Sachs and Morgan Stanley have declined to comment.
Company minting profit for past few years
In August 2021, the company first announced that it is considering an IPO in 2022. According to a statement, Chief Executive Officer Amrish Rao had raised $600 million from investors, including Fidelity Management and Research Company and BlackRock Inc. The company said it targets a public offering within 18 months and has been in profit for several years.
Following this deal, in September 2021, the company raised $100 million from US-based investment management company Invesco. The investment was made through Invesco Developing Markets Fund. Rao had said that time that the company’s valuation at that time was assumed to be $3 billion.
The trust of its investors backs the company
The company, which provides merchants payment PoS and Buy Now Pay Later (BNPL) solutions, is backed by several global investors, including Sequoia Capital, Temasek Holdings, Actis, PayPal and MasterCard. In the same month, India’s largest commercial bank State Bank of India, invested $ 20 million in the startup.
Pine Labs serves over 150,000 merchants in India, the Middle East and Southeast Asia. The company entered the consumer payments space in April 2021, both organically and through acquiring the consumer fintech platform Fave.
The digital payment gateway and commerce platform primarily operating in India support payments for enterprise customers, including Apple Inc., McDonald’s Corp. and Starbucks Corp.
