Pine Labs has received final approval from the National Company Law Tribunal (NCLT) to reverse-flip its corporate structure, relocating its parent entity from Singapore to India. The decision, granted by the Chandigarh bench of the NCLT, allows Pine Labs to merge its Singapore-based entity with its Indian arm. This move is a significant step in the company’s strategy to streamline operations and prepare for its much-anticipated initial public offering (IPO) in India.
The reverse flip involves issuing shares of the Indian entity to the existing shareholders of Pine Labs’ Singapore arm, ensuring a seamless transition while maintaining ownership continuity. The company has already secured all necessary regulatory approvals in India and will now seek corresponding clearances in Singapore to complete the merger process. This restructuring aligns with Pine Labs’ long-term vision of enhancing operational efficiency and creating value for stakeholders.
Pine Labs’ decision to relocate its domicile back to India is seen as a strategic move ahead of its planned $1 billion IPO later this year. The company previously postponed plans to list in the United States due to unfavourable market conditions and is now focusing on leveraging India’s capital markets. By joining other fintech firms like Groww and Razorpay in reverse flipping to India, Pine Labs is tapping into the growing trend of tech companies preferring domestic listings for better market access and regulatory advantages.
Despite reporting a net loss of ₹187 crore in FY24, compared to ₹56 crore in FY23, Pine Labs demonstrated strong growth potential with operating revenues of ₹1,317 crore. The company was last valued at $5 billion in 2022 and is reportedly targeting a valuation of $6 billion for its IPO. This move positions Pine Labs as a key player in India’s rapidly expanding digital payments ecosystem.
Founded in 1998, Pine Labs initially focused on point-of-sale (PoS) payment solutions but has since diversified into online payments and financial services. With over 500,000 merchants across India, Southeast Asia, and the Middle East, the company boasts an impressive investor base that includes Peak XV Partners, Temasek, PayPal Ventures, and Mastercard.
The reverse flip approval marks a pivotal moment for Pine Labs and signals its commitment to consolidating operations in India while preparing for one of the largest fintech IPOs since Paytm’s listing in 2021. This development also highlights the growing maturity of India’s fintech sector as companies increasingly choose local markets for growth opportunities.
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