Alpha Wave Ventures II LP and Alpha Wave India I LP have successfully completed their full exit from Pine Labs through a ₹560.3 crore block deal. The shares were priced at ₹153.50 per share, representing a 4% discount to the previous closing price and marking a complete exit for both Alpha Wave investors from the fintech company. This transaction follows a previous block deal in May when about 2.47 crore shares representing 2.2% of the company's outstanding equity were traded at an average price of ₹144 per share, valued at approximately ₹356 crore. At the end of the June quarter, public shareholders held 100% stake in the company, as per data available on the exchanges.
Pine Labs reported a positive set of earnings in the first quarter, with its consolidated net profit nearly quadrupling to ₹19.6 crore from ₹5 crore in the previous year. According to CNBC TV18, the company's revenue from operations increased 19.6% to ₹737 crore in the June quarter from ₹616 crore. The company's earnings before interest, taxes, depreciation and amortisation (EBITDA) more than doubled to ₹95 crore from ₹44.6 crore in the corresponding quarter last year. Its margin expanded to 12.9% from 7.2% in the year-ago period. Pine Labs said it is expecting higher margins in the coming quarters for the financial year 2027 as a whole.
Pine Labs processed gross transaction value of about ₹4.22 lakh crore during the quarter, while its digital checkout-point base grew 18% to 21.7 lakh. More than 70% of transactions on its platform were routed through UPI. The company's profit before tax stood at ₹37.7 crore, compared with a loss of ₹4.8 crore a year earlier. Shares of Pine Labs ended the previous session 2.2% lower at ₹160.40, as reported by CNBC TV18. The stock has increased 5.4% in the past month but is down 31.8% this year, so far.
Pine Labs has filed for an IPO with the Registrar of Companies (ROC) and Securities and Exchange Board of India (SEBI). However, the company faces significant financial challenges, including losses of ₹1,454.87 million in Fiscal Year 2025, with total expenses reaching 104.29% of total income. The company has experienced negative cash flows from operations and net cash used in operating activities of ₹2,811.93 million in the three months ended June 30, 2025. Additionally, top 10 customers account for 29.30% and 30.95% of revenue respectively, creating concentration risk, while the company's auditor's reports contain adverse opinions for Fiscal Years 2025, 2024 and 2023.
