The Indian fintech sector is witnessing a transformative phase, and at the heart of this evolution is Pine Labs, a leading merchant commerce platform. In a recent interview, B. Amrish Rau, Chairman & MD and CEO of Pine Labs, shed light on the company’s remarkable global expansion, its recent profitability, and its ambitious plans for the future. As Pine Labs prepares for its highly anticipated IPO, the company’s international presence and strategic growth initiatives are drawing significant attention from investors and industry experts alike.

Global Footprint: A Key Driver of Growth

Pine Labs has made substantial strides in expanding its global footprint. According to Amrish Rau, the company’s presence in international markets has improved significantly, with operations now spanning over 20 countries. This global expansion has not only diversified Pine Labs’ revenue streams but also positioned the company as a formidable player in the global fintech landscape.

• International Revenue Growth: Pine Labs has reported a staggering 58% growth in revenues from its international business between FY23 and FY25. This rapid expansion underscores the company’s ability to adapt to diverse markets and deliver value to merchants worldwide.
• Strategic Acquisitions: Acquisitions have played a pivotal role in Pine Labs’ global push. The acquisition of Qwikcilver, for instance, opened up new partnerships and product offerings, enabling the company to tap into new markets and enhance its service portfolio.
• World-Class Platform: Pine Labs has invested heavily in building a world-class platform that adheres to the highest levels of security certifications. This commitment to security and compliance has been instrumental in gaining the trust of global partners and merchants.

Profitability and Financial Health

Pine Labs’ journey to profitability is a testament to its strategic focus and operational efficiency. The company has been profitable for the last five years on an adjusted dividend level, with particularly strong performance in the last three years.

• Profit Trends: In FY24, Pine Labs reported an adjusted dividend of Rs 155 crores, which surged to over Rs 355 crores in FY25. The trend line for profit-after-tax (PAT) has been consistently positive, with the first quarter of FY26 showing a PAT of Rs 5 crores compared to a loss of Rs 25 crores in the same period the previous year.
• Debt Repayment: A significant portion of the funds raised through the IPO will be used to repay existing borrowings, which will lead to a healthier balance sheet and reduced interest costs. This move is expected to further strengthen the company’s financial position.
• Capital Expenditure: Pine Labs has managed to reduce its capital expenditure from 23% of revenue in FY23 to 7% in FY25 and 6% in 3M FY26. This efficiency in capital allocation has contributed to the company’s improved profitability.

Domestic Growth and Market Leadership

While Pine Labs is making waves globally, its domestic growth remains robust. The company has been adding merchants at a compound annual growth rate (CAGR) of 30%, solidifying its position as a market-dominant force in the Indian fintech sector.

• Merchant Base: Pine Labs’ merchant base has grown exponentially, with the company serving top clients such as SBI, HDFC, D Mart, Samsung, LG, Amazon, Flipkart, Marriott, and leading petroleum majors. According to Amrish Rau, Pine Labs is the market leader in most sectors, with a presence in the top 3 companies in each sector.
• Product Innovation: The company has continuously innovated its product offerings, introducing digital payments, contactless transactions, and integrated fintech solutions that cater to the evolving needs of merchants and consumers.
• Customer Demand: There is a high demand for integrated fintech solutions in both established and new markets, driven by the growing adoption of digital payments. Pine Labs is well-positioned to capitalize on this trend, offering a comprehensive suite of services that meet the needs of a diverse customer base.

Future Plans and Strategic Initiatives

Pine Labs’ future plans are centered around further expansion, both domestically and internationally. The company aims to leverage the funds raised through the IPO to achieve several strategic goals.