Singapore-based Pine Labs Limited (PLS) will merge with its Indian counterpart, Pine Labs Private Limited, as part of the reverse flipping. Pine Labs’ appeal in India is still being considered by the National Company Law Tribunal, notwithstanding the company’s approval in Singapore. Peak XV Partners-backed financial upstart is reportedly pursuing an IPO in India after redomiciling from Singapore.

Pine Labs' Reverse Flip

Image source: entrackr

Pine Labs, a fintech unicorn, is apparently preparing to relocate its headquarters to India after gaining consent from a Singapore court to merge its Singapore-based corporation with its India firm.

The court judgment authorizes Singapore’s Pine Labs Limited (PLS) to merge with its Indian counterpart, Pine Labs Private Limited (PLI). PLS will transfer all of its assets and properties to the Indian corporation, allowing the company to move its operations to India.

The development was initially reported by TechCrunch. Pine Labs‘ appeal in India is still pending before the National Company Law Tribunal, notwithstanding the company’s approval in Singapore.

On February 29, the case was heard by the NCLT’s Chandigarh Bench under Sections 230-232 and 234 of the Companies Act of 2013. Despite five successive hearings, the case has not progressed. Following the most recent hearing on May 17, the subject has been adjourned until May 31, 2024.

Earlier this year, it was reported that the corporation has requested board clearance to relocate its parent company from Singapore to India. Pine Labs was believed to be considering shifting its headquarters to India by the end of 2024.

Pine Labs hopes to become the third major financial company, after Phonepe and Groww, to relocate to India. A number of other startups, including Zepto, Razorpay, and Flipkart, are considering reverse flipping.

The primary driving force for reverse flipping is often the desire to pursue an initial public offering (IPO) in the Indian market, which has demonstrated a strong interest in Indian startup IPOs.

TBO Tek’s premium listing and Go Digit’s heavily subscribed IPO in May 2024 are two recent instances of why entrepreneurs are once again flocking to public markets following a slowdown in 2022.

In September 2021, Pine Labs commenced the IPO process by turning its Singapore-based parent to a public limited company.

In 2022, the company planned to raise $1 billion through an IPO in the United States. However, it delayed its IPO plans until the following year, citing ‘poor market attitudes.