Pine Labs CEO: “We’re Not Just a PoS Company Anymore”

In an exclusive conversation with Moneycontrol, Pine Labs CEO Amrish Rau discussed the company’s evolving identity, strong financial growth, and upcoming IPO opening on November 7. He emphasized that Pine Labs has moved far beyond being just a point-of-sale (PoS) company to become a software-led, full-stack fintech enterprise.

Investor Feedback and IPO Sentiment

During his Gujarat investor roadshow, Rau noted that feedback from investors in Ahmedabad and Rajkot has been overwhelmingly positive.

“Every company going to IPO visits Rajkot and Ahmedabad. Investors are very supportive, and no one is looking for an exit,” Rau said.

While the IPO size reduction drew attention, Rau clarified that the decision stemmed from the firm’s valuation philosophy and goodwill among clients.

“All top banks, retailers, and e-commerce firms work with us because of our technology and trust,” he added.

Also Read: India’s Startup IPO Boom Turns Into a $1.5 Billion VC Cashout

Strong Growth Metrics Highlighted in RHP

According to Pine Labs’ Red Herring Prospectus (RHP), the company’s gross transaction value (GTV) has grown nearly 60% CAGR over the past three years. Transaction values increased by about 48–50%, and merchant onboarding rose by 30% year-on-year, reflecting consistent performance and market expansion.

Profitability and Operating Leverage

Rau highlighted Pine Labs’ EBITDA margins improving from 11–12% in FY22 to 20% currently, even as revenues surged. The company achieved this through broad-based growth and cost control efficiency.

He also noted that ESOP expenses are declining, with recent grants issued closer to the fair market value, reducing accounting impact. Despite ESOP-related costs, Pine Labs turned PAT positive in Q1 FY26.

Business Transformation and Diversification

A key message from Rau was Pine Labs’ diversification beyond PoS.

“People who think we’re just a PoS company are missing the full picture,” he said.

In Q1 FY26, the company reported $46 billion in GTV, with growth driven across all verticals — PoS, online payments, BBPS, and prepaid services. Notably, the prepaid business now contributes around 30% of Pine Labs’ ₹650 crore quarterly revenue.

Four Key Verticals Define Pine Labs 2.0

As outlined in the RHP, Pine Labs operates across four major verticals:

1. Offline business

2. Value-added services & transaction processing

3. Fintech infrastructure (APIs, BBPS, online payments)

4. Issuing & processing

These together form what Rau calls “Pine Labs 2.0” — a full-stack fintech model unmatched in India.

IPO Outlook and Long-Term Vision

For Rau, the IPO is a “corporate milestone,” not an end goal.

“I’ve already built and exited a startup before. This time, it’s about building a world-class fintech,” he said.

He believes revenue growth and EBITDA margins should be the key metrics for investors to track post-listing.

Rau concluded that Pine Labs’ evolution into a diversified fintech positions it strongly for sustainable growth, both in India and globally.

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