The Pine Labs IPO, which began on Friday, November 7, is nearing the final day of its subscription period today. So far, the issue has been subscribed by more than 50%, primarily driven by retail investors. Pine Labs IPO price band has been set between ₹210 and ₹221 per share. Pine Labs IPO consists of a fresh share issuance valued at ₹2,080 crore, in addition to an offer for sale (OFS) of over 8.23 crore equity shares, which is estimated to be worth ₹1,819.9 crore at the upper end of the price range, contributed by existing stakeholders.
The proceeds from the new share issuance will be used by the company to reduce debt, invest in IT assets, cover expenses related to cloud infrastructure, develop technological initiatives, and purchase digital checkout points.
Currently, the Pine Labs IPO GMP is trading flat. Based on the latest assessment of grey market activity over the last 10 sessions, the current IPO GMP indicates a downtrend and is expected to decline further. The lowest GMP observed is ₹0.00, and the highest reached ₹60, according to expert analyses.
After the fintech firm company makes its debut on the Indian stock exchange on Friday, November 14, it will have to face its peers that are already listed, such as Ltd (Paytm), Ltd, and Ltd. Let’s examine their valuations and see how each one is positioned.
Peer Comparison
Pine Labs is seeking an Enterprise Value of ₹18,093 crore, while its competitors, One 97 Communications Ltd. (Paytm), are looking for an Enterprise Value of ₹69,965 crore, Zaggle Prepaid Ocean Services at ₹4,349 crore, and One Mobikwik Systems at ₹1,380 crore.
Among these four companies, Zaggle Prepaid Ocean Services is the only one that is profitable, boasting a P/E ratio of 56.8 times. In contrast, the other three companies are operating at a loss.
The EV/EBITDA ratio for Pine Labs stands at 82.8 times, while for Paytm it is (46.4) times. Zaggle Prepaid shows a ratio of 38.1 times, and One Mobikwik has a ratio of (13.6) times.
The EV/Sales ratio for Pine Labs stands at 8.0 times, while Paytm’s is at 10.1 times. Zaggle Prepaid has an EV/Sales of 3.3 times, and One Mobikwik’s ratio is 1.2 times.
Brokerage SBICAP Securities provided a report on Pine Labs indicating that at the upper price band, the stock is being valued at EV/Sales, EV/EBITDA, and EV/Adj EBITDA multiples of 8.0x, 82.8x, and 50.7x, respectively, calculated on a post-issue capital basis.
Talking about the financials, Harshal Dasani, Business Head, INVasset PMS, explained that Pine Labs IPO arrives in a market that has grown cautious toward fintech valuations. While its FY25 performance—revenue of around ₹2,274 crore (up 28% YoY) and adjusted EBITDA of ₹357 crore—shows improving efficiency, growth has slowed compared with earlier years.
According to Dasani, the company remains dependent on merchant payments and instalment financing, both highly competitive and low-margin businesses. Despite diversification across 20 countries, the valuation near $2.9 billion still prices in strong future execution, leaving limited room for error if expansion in newer geographies underdelivers.
Speaking about the company’s peers, Harshal Dasani said that Paytm, though the largest digital payments platform, continues to face credibility and profitability challenges. Q2 FY26 revenue rose 24% YoY, but net profit fell sharply due to one-time adjustments. The core payments business remains low-margin, and the firm’s lending and financial-services distribution—despite 60%+ growth—faces regulatory headwinds and rising credit risk. Until monetisation stabilises and cash flows turn consistently positive, Paytm’s investment case stays fragile, especially given its volatile stock performance since listing, according to Harshal.
Zaggle offers steadier financials according to Dasani but limited scalability. Q1 FY26 revenue grew 31% YoY to ₹331 crore, with EBITDA margins near 10% and PAT at ₹26 crore. While profitability has improved, the business is concentrated in B2B expense management and prepaid cards—a niche that caps long-term growth potential compared to broader fintech peers, believes Harshal.
“Overall, Pine Labs shows improving fundamentals but elevated pricing, Paytm remains a turnaround story under scrutiny, and Zaggle is profitable but growth-constrained. None are without risks, and investor preference will likely hinge on tolerance for volatility versus visibility,” said Harshal Dasani.
Indian fintech outlook
In discussing fintech companies in depth, Mohit Gulati, Chief Investment Officer and managing partner of ITI Growth Opportunities Fund, asserts that the competitive environment in Indian fintech shows that emphasis and operational rigor are becoming just as crucial as strong distribution capabilities and striking volume figures.
According to Mohit Gulati, Zaggle has quietly established itself as the most focused fintech of its peer set, building a high-margin business that serves enterprise clients and consistently generates cash, defying the growth-at-any-cost trend. Its disciplined approach and commitment to profitable B2B payments set it apart from many competitors—proving that scale is not the only path to success in Indian fintech.
Gulati explains that Pine Labs, meanwhile, draws strength from its extensive merchant network and deep institutional partnerships. The company’s reach across sectors and geographies is impressive, but its aggressive push for growth and international expansion means visibility on sustainable profitability remains some way off.
“Pine Labs is betting big on being the infrastructure backbone for digital transactions, even if the bottom line takes a back seat for now,” added Mohit.
In sharp contrast, Paytm exemplifies the challenges of managing both size and complexity, believes Gulati.
He explained that as India’s largest digital payments platform, it juggles a fragmented business spanning wallets, financial services, and commerce, while consistently confronted by regulatory hurdles that sap both momentum and investor patience. The regulatory overhang and frequent strategic pivots have left Paytm vulnerable to fatigue, both within its team and among investors looking for clearer growth direction.
“In this pecking order, Zaggle represents the value of focus and disciplined execution. Pine Labs stands for broad reach and ambitious institutional depth, while Paytm increasingly symbolizes the fatigue of scale without clarity,” said Mohit Gulati.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.