Private equity firm Actis has sold part of its stake in fintech company Pine Labs through a bulk deal worth ₹151.6 crore. The move is part of a larger trend where early investors are gradually reducing their holdings in newly listed technology companies after their IPO lock-in periods end.
Actis sold a 0.86% stake in Pine Labs through its investment arm, Actis Pine Labs Investment Holdings Limited. The firm offloaded around 98.3 lakh shares at ₹154.25 per share. Before the sale, Actis owned about 4.58% of the company. It first invested in Pine Labs in 2018 when it led an $82 million funding round that helped the company reach a valuation close to $1 billion.
The latest transaction comes at a time when Pine Labs is showing strong business growth but continues to face pressure on its stock price due to heavy selling by institutional investors.
Several Investors Cash Out After Lock-In Expiry
Actis is not the only investor reducing its exposure to Pine Labs. In recent months, several major shareholders have sold shares after the expiry of the company’s IPO lock-in period.
Madison India Capital sold shares worth ₹356.86 crore through a block deal, while Altimeter Capital exited shares worth around ₹211 crore. On the day Pine Labs was listed on the stock exchange, UBS AG also sold a small stake to Morgan Stanley Asia (Singapore) in a transaction worth over ₹36 crore.
Market experts say many private equity and venture capital firms are now choosing gradual exits instead of selling large stakes at once. This approach helps them avoid putting too much pressure on stock prices and protects them from market volatility.
The selling increased after Pine Labs’ six-month lock-in period ended. More than 923 million shares became eligible for trading, creating a large supply in the market. As a result, the stock fell sharply and has remained under pressure since then.
While Pine Labs shares made a strong debut after the IPO, they are currently trading around ₹152-154, which is significantly below the IPO issue price of ₹221.
Pine Labs Returns to Profit in FY26
Despite weakness in its share price, Pine Labs has reported a strong improvement in its financial performance.
The company posted a consolidated net profit of ₹113 crore in FY26, compared to a loss of ₹145 crore in FY25. Its operating revenue rose 19% year-on-year to more than ₹2,700 crore.
Pine Labs also reported steady improvement throughout the financial year. It recorded its first quarterly profit after listing during the second quarter of FY26 and continued to improve earnings in the following quarters.
Adjusted EBITDA increased by 57%, while EBITDA margins improved from 16% to 21%. The company also reported a sharp rise in operating cash flow, showing stronger business fundamentals.
Pine Labs launched its ₹3,900 crore IPO in November 2025 at a price band of ₹210-221 per share. The issue was subscribed 2.48 times and valued the company at around $2.7 billion. The stock listed at a premium and delivered gains of up to 28% for investors shortly after listing.
Several early investors earned strong returns from the IPO. Peak XV Partners emerged as one of the biggest beneficiaries, while investors such as Sofina Ventures, Madison India, PayPal and Mastercard also made significant gains.
Focus on Growth, AI and Global Expansion
Pine Labs has continued to expand its business through acquisitions and new technology initiatives.
The company recently completed the acquisition of Shopflo for ₹88 crore and earlier acquired Agya Technologies. Before its IPO, Pine Labs had also acquired companies such as Qfix and Mosambee to strengthen its payment and merchant solutions business.
Artificial intelligence is becoming an important part of the company’s growth strategy. In June 2026, Pine Labs launched P3P, which it describes as India’s first agentic UPI payment protocol. The system allows AI-powered transactions to be completed automatically through pre-approved UPI mandates.
Its Setu platform has also introduced an AI-based bill payment experience that can help users manage and pay bills more easily.
Pine Labs is also expanding internationally. The company recently partnered with Wio Bank in the UAE and entered the Philippines market through a partnership with GCash.
At the same time, the company is dealing with some regulatory challenges. Earlier this year, the Reserve Bank of India imposed a penalty on Pine Labs for deficiencies related to KYC compliance for prepaid payment instruments. In addition, proposed RBI rules on prepaid instruments could affect income generated from unused gift card balances. However, the company has said these changes are not expected to have a major impact on its business.
Despite recent pressure on the stock, analysts remain positive about Pine Labs’ long-term growth prospects. Brokerages such as UBS, Citi and Morgan Stanley continue to maintain a favourable view, citing the company’s improving profitability, strong revenue growth and expanding presence in digital payments markets in India and abroad.