In a landmark regulatory milestone, fintech major Pine Labs has secured all three critical payment licences from the Reserve Bank of India (RBI), positioning itself as the only entity currently authorised across the full stack of payment aggregator categories in the country. The approvals come at a pivotal moment—just as the company prepares to debut on the public markets following a strongly subscribed initial public offering (IPO).
A First in India’s Fintech Landscape
According to recent RBI notifications and industry reports, Pine Labs receives three key RBI payment licences for:
- Payment Aggregator – Online (PA-O)
- Payment Aggregator – Physical (PA-P)
- Payment Aggregator – Cross Border (PA-CB)
Taken together, these licences authorise the company to process offline merchant payments, online transactions, and international inward and outward remittances, enabling it to function as a fully integrated digital payments operator.
Pine Labs had earlier received its Payment Gateway approval and continues to hold a Prepaid Payment Instruments (PPI) licence granted in 2017, allowing it to issue stored-value wallets and gift cards. With these layers now in place, the company’s payment portfolio spans everything from in-store card and QR transactions to online checkout, fintech infrastructure services, and global merchant payments.
CEO Amrish Rau confirmed that Pine Labs is the first company to secure all three aggregator licences under the RBI’s tightened regulatory framework released on 15 September 2025.
From Merchant PoS Provider to Full-Stack Payments Powerhouse
Founded in 1998 as a card-based merchant payments provider, Pine Labs gradually expanded into digital payments, merchant credit, and prepaid solutions. Its strategic evolution accelerated in 2020–2021 with the launch of Pine Labs Online and further solidified in FY23 with the acquisition of Bengaluru-based fintech infrastructure startup Setu.
Today, the company services over 5,00,000 merchants across India, Southeast Asia, and the Middle East, operating both offline PoS terminals and online payment platforms. The newly granted licences allow Pine Labs to unify these operations, expand its merchant network, and enhance settlement efficiency across channels.
Industry analysts believe the full-stack authorisation significantly strengthens Pine Labs’ competitive position at a time when the Indian digital payments market is projected to exceed USD 300 billion (~INR 27 lakh crore) by 2030.
Pine Labs IPO Sees 2.46X Subscription Amid Strong Institutional Demand
Pine Labs’ three payment licences approvals coincide with the company’s public offering, which closed on 11 November 2025 with an oversubscription of 2.46X. Investors bid for 24.09 crore shares against 9.78 crore shares on offer.
The IPO featured:
- Fresh issue: up to INR 2,080 crore
- Offer for sale (OFS): up to 8.23 crore shares, led by existing investors including Peak XV Partners, Temasek, PayPal, and Mastercard
The company set a price band of INR 210–INR 221 per share, with the upper end valuing Pine Labs at approximately INR 25,377 crore. This valuation is notably 40% below its last private market valuation of USD 5 billion (~INR 44,363 crore), reflecting the broader recalibration across fintech markets.
The shares are expected to list on 14 November 2025.
Use of Proceeds: Strengthening Tech and Global Expansion
Pine Labs plans to allocate IPO proceeds toward:
- Repaying or prepaying borrowings (approximately INR 532 crore)
- Investing in overseas subsidiaries, including
- Qwikcilver Singapore
- Pine Payment Solutions (Malaysia)
- Pine Labs UAE
- Technology and cloud infrastructure expansion, with around INR 769 crore earmarked for this purpose
The capital infusion is intended to accelerate the company’s global scale-up and build out its fintech infrastructure backbone.
Financial Performance: A Turn to Profitability
For Q1 FY26, Pine Labs reported:
- Net profit: INR 4.8 crore (a reversal from a loss of INR 27.9 crore in Q1 FY25)
- This improvement was aided by a one-time tax credit of INR 9.6 crore
- Operating revenue: INR 615.9 crore, up 18% YoY
For the full FY25, the company narrowed its net losses by 57% YoY to INR 145.4 crore, while operating revenue grew 28% YoY to INR 2,274.3 crore.
These metrics, combined with fresh regulatory approvals, are expected to strengthen investor confidence as Pine Labs enters the public markets.
A Defining Moment for India’s Fintech Ecosystem
Beyond its immediate business implications of Pine Labs’ three payment licences approvals, the company’s achievement marks a notable moment for India’s regulatory and fintech landscape. The RBI’s tightened oversight of payment intermediaries has raised the bar for compliance and capital adequacy standards. Pine Labs has now demonstrably met across all categories.
With its complete suite of licences, strong merchant base, and renewed balance sheet, Pine Labs is poised to accelerate innovation across online payments, offline acceptance, fintech APIs, and cross-border commerce.
As the company transitions from a leading merchant payments processor to a comprehensive payments and fintech platform, the stage is set for its next phase of growth—both in India and internationally.
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