Indian fintech firm Pine Labs has filed its draft red herring prospectus (DRHP) for its initial public offering (IPO).

The public offer comprises of fresh issue of shares worth Rs 2,600 crore ($304 million) and  offer for sale (OFS) of up to 14.78 crore shares by existing backers, according to its draft red herring prospectus (DRHP).

Pine Labs will use the proceeds from the fresh issue of shares to invest in overseas units, develop technology and reduce its borrowings.

As part of the OFS, Peak XV Partners will offload up to 3.89 crore shares, PayPal up to 1.15 crore shares, Mastercard up to 1 crore shares, Actis up to 1.49 crore shares and Temasek up to 1.48 shares.

Pine Labs may also consider a pre-IPO placement of up to Rs 520 crore, it added.

The fintech company's revenue from operations in the nine months ended December 31, 2024 grew 23% to Rs 1208.16 crore from Rs 982.05 crore in the same period previous year. Notably, it swung to a profit of Rs 26.14 crore in the nine months ended December 31, 2024 from a loss of Rs 151.63 crore in the same period ended December 31, 2023.

However, for the full fiscal ended March 31, 2024, the company continued to make losses at Rs 187.17 crore versus a loss of Rs 56.24 crore in FY23.

"We may continue to incur operating losses as we continue expanding our operations, including scaling and broadening our partnership ecosystem, expanding and increasing the adoption of our product suite, investing in technology, entering new international markets and pursuing strategic acquisitions," it noted.

In the full fiscal FY24, the company processed GTV (gross transaction value) of Rs 570472 crore on its digital infrastructure and transaction platform while in the nine months period ended December 31, 2024 it processed transactions with GTV of Rs 714826 crore.

Pine Labs also said that it will from time to time make acquisitions and investments and enter into strategic partnerships to expand its business. It has in the past acquired companies including Fave, QFix, Mosambee and Setu.

Axis Capital, Morgan Stanley, Citigroup, JP Morgan and Jefferies are managing the company's IPO.

Pine Labs offers various payment solutions for both online and offline businesses, including point-of-sale (PoS) systems, payment gateways, and omnichannel solutions.

In India, the total market opportunity in terms of total payment value was around $1.1 trillion in FY24, having grown at a CAGR of 36% from $226 billion in FY2019, it said citing a Redseer report. The market is projected to expand further to $3-3.3 trillion by FY29.

Beyond India, it noted that opportunities exist in Southeast Asia, the UAE, Australia, and the US. The total market opportunity in these regions is projected to grow from $1.8 trillion in 2023 to $3.1-3.2 trillion by 2028.

As of December 31, 2024, Pine Labs had 915,731 merchants, 666 consumer brands and enterprises, and 164 financial institutions, using its platform.

The Noida-headquartered company had converted itself into a public company last month in preparation for the IPO.

In April, The Head and Tale had exclusively reported about Pine Labs securing the National Company Law Tribunal's final approval to merge its Singapore and Indian entities, paving the way for the fintech company to shift its domicile from Singapore to India.

Founded in 1998, Pine Labs has raised about $1.3 billion in external funding so far.