Singapore-based fintech firm Pine Labs to seek $678 million in US IPO

Pine Labs offers solutions for in-store and online payments, as well as prepaid, loyalty and "pay later" programmes. PHOTO: PINE LABS/FACEBOOK

HONG KONG (BLOOMBERG) - Pine Labs, a Singapore-based digital payments provider backed by Sequoia India and Mastercard, is moving ahead with preparations for a US listing and seeks to raise about US$500 million (S$678 million), according to people familiar with the matter.

The company has filed confidentially with the United States Securities and Exchange Commission for an initial public offering (IPO) in New York as soon as in the first half of this year, the people said. The listing could give Pine Labs a valuation of about US$5.5 billion to US$7 billion, they said, asking not to be identified because the matter is private.

Goldman Sachs Group and Morgan Stanley are the lead banks on the deal, the people said. Considerations are ongoing and details such as the size and timing could still change, the people said.

A representative for Pine Labs did not respond to requests for comment, while representatives for Goldman Sachs and Morgan Stanley declined to comment.

Led by chief executive Amrish Rau, Pine Labs in July raised about US$600 million from investors including Fidelity Management & Research and BlackRock, according to a statement. The company said it was targeting a public offering within 18 months and has been operationally profitable for several years - a rarity among the new crop of Indian fintechs.

The start-up, which offers solutions for in-store and online payments as well as prepaid, loyalty and "pay later" programmes, is valued at US$3 billion, Mr Rau said at the time.

The deal was followed by an additional US$100 million in funding from Invesco Developing Markets Fund. Pine Labs also counts Temasek Holdings, PayPal Holdings and Actis Capital among its other investors. India's largest commercial bank, the State Bank of India, invested US$20 million in the start-up earlier this month.

Pine Labs serves over 150,000 merchants in India, the Middle East and South-east Asia. The company has expanded both organically and via acquisitions including consumer fintech platform Fave last year.

The digital payments gateway and commerce platform, whose main operations are in India, supports payments for enterprise customers such as Apple, McDonald's Corp and Starbucks.

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