Merchant commerce platform Pine Labs is eyeing an initial public offering (IPO) on Nasdaq and is looking to raise as much as $1 billion with primary and secondary stake sales, Mint reported on Monday (Oct. 11), citing unnamed sources.
Morgan Stanley was hired by Pine Labs to manage the proposed initial share sale and is pushing to file IPO paperwork before October closes, the sources said.
“The company is currently expanding in several Asian markets,” one of the two sources said. “Its investors and founders feel that a Nasdaq listing will be commensurate with its global aspirations and rapid growth over the years.”
“Pine Labs may, however, close another pre-IPO round before the listing and is currently negotiating with several private equity investors,” the second source said, per Mint.
Based in Noida, India and founded in 1998, Pine Labs facilitates last-mile retail transactions both digitally and at physical stores for over 100 brands. The company originally operated in the petroleum automation retail space but moved into payments products and services for the merchants’ market in 2004.
More than 100,000 retailers in Asia work with Pine Labs and over 350,000 merchants use the company’s point of sale (POS) terminals in India. The company’s solutions are tapped by numerous industries, including electronics, food, fashion, travel and more.
Backed by PayPal, Sequoia Capital India, Temasek and Mastercard, Pine Labs raised $100 million in September from Invesco Developing Markets Fund, which gave the company a valuation of roughly $3 billion. Aside from POS terminals, Pine Labs also offers invoicing solutions and access to working capital.
Via a partnership with Mastercard earlier this year, Pine Labs grew its presence in Southeast Asia and in April bought Singapore-based Fave for $45 million. The Fave acquisition was intended to support its presence in Singapore and Malaysia while also helping the company move toward launching in India.
With Fave, Pine Labs also is planning to bring its buy now, pay later (BNPL) platform to Singapore and Malaysia, with West Asia expansion plans in the works.