Pine Labs’ Q2 Profit Run

Fresh off its IPO, Pine Labs reported its second consecutive quarter of profitability in Q2. The upbeat results were driven by a strong top-line growth, improving margins, growing scale and cost discipline.

Here is the breakdown of the Q2 FY26 numbers:

• Consolidated Net Profit: INR 6 Cr against a loss of INR 32 Cr in Q2 FY25


• Operating Revenue: INR 649.9 Cr, up 18% YoY


• Total Expenses: INR 661.7 Cr, up 8% YoY


• Adjusted EBITDA: INR 122 Cr, up 62% YoY

Higher-Margin Engines Kick In: While Pine Labs’ core payments business continued to see solid top-line growth, its issuing and acquiring vertical quietly emerged as a growth engine and contributed 33% to the total top line. This high-margin segment bolstered margins, brought stickier clients and simultaneously premiumised its revenue mix.

Volume Flywheel In Action: Operationally, Pine Labs scaled up its breadth and frequency – merchant base rose 29% YoY to 10 Lakh, and merchant transactions climbed to 190 Cr. While questions remain over whether Pine Labs can maintain its rapid pace of margin expansion and merchant acquisition, here’s how the listed fintech major fared in its first financial results post listing.

From The Editor’s Desk

$12 Bn+ Worth Of Funds Launched In 2025

• The Indian startup ecosystem witnessed a record-breaking year in 2025, with over $12.1 Bn raised so far across 81 new VC, PE, micro, and state-backed funds. This marked a sharp 39% YoY increase from 2024.


• The surge was fuelled by successful IPO exits and a wave of new fund launches, with 58% of the new funds targeting early stage startups, reflecting investor conviction in young but scalable ventures.​


• Fintech remained the top sector, accounting for 16% of the new corpus, followed by consumer-focused funds (15.5%) and AI-centric vehicles (12%), highlighting the continued appetite for innovation and growth.

Meesho & Aequs IPOs

• The ecommerce major’s public issue saw strong investor interest on the first day of bidding and was oversubscribed 2.35X. Overall, investors bidding for 65.4 Cr shares against 27.8 Cr shares on offer.


• Meanwhile, the contract manufacturing company’s IPO also opened to robust demand and was oversubscribed 3.4X. Investors placed bids for 14.4 Cr shares against the 4.2 Cr shares available.


• While Meesho’s IPO comprises an INR 5,421 Cr fresh issue and an OFS of 10.6 Cr shares, the Aequs issue includes a fresh issue worth up to INR 670 Cr and an OFS of 2.03 Cr shares.

Furlenco Wraps Up New Round

• The furniture rental startup has raised INR 125 Cr in a funding round led by existing backer Sheela Foam to strengthen its presence, enter new cities, invest in product innovation and build an IPO-ready business by FY27.


• Founded in 2012, Furlenco runs a subscription-led furniture and appliance rental platform with over 300 SKUs across 28 cities. The company’s revenue grew 64% YoY to INR 228.7 Cr in FY25, marking its first profitable fiscal year after a tumultuous journey.​


• Operational challenges, including heavy reliance on debt and the impact of the pandemic, led to significant losses before FY25. But strategic resets and investor support have set it on the path to profitability and an impending IPO.

Decoding MCA’s “Small Company” Criteria

• The corporate affairs ministry has raised the small company threshold to a paid-up capital of INR 10 Cr and a turnover of INR 100 Cr, allowing more businesses to enjoy relaxed compliance norms.​


• The revised definition will bring thousands of high-growth startups and mid-sized businesses into the small company category, enabling them to benefit from simplified governance and lower operational costs.


• The move is expected to give funded startups more flexibility during crucial growth phases, allowing founders to focus on building their ventures rather than worrying about compliance issues.

The Latest AI Fund In Town

• Aakrit Vaish, IndiaAI Mission advisor and Haptik cofounder, has partnered with ex-Together Fund partner Pratyush Choudhary to launch Activate, a new AI-focussed VC fund with a $75 Mn corpus.


• It plans to invest $500K to $3 Mn in early stage AI-native startups across applications, foundational models, physical infrastructure, and other allied verticals. It has already begun scouting for potential portfolio startups.


• The fund’s LPs include high profile names like Perplexity founder Aravind Srinivas, upGrad’s Ronnie Screwvala, Vinod Khosla, Fractal’s Srikanth Velamakanni, and Peak XV Partners’ Shailendra Singh, reflecting strong industry backing.​

Inc42 Markets

Inc42 Startup Spotlight

Can Nia.one Stabilise India’s Gig Attrition Rates?

India’s gig workers frequently change jobs and struggle to find stable income, affordable housing, and access to essential services. This instability leads to high stress and poor long-term outcomes for both workers and employers.

Nia.one’s Solution: Founded in 2024, Nia.one is building a full-stack, phygital ecosystem to bring stability to the gig economy. The platform centres around physical spaces near major work clusters that offer verified jobs, affordable housing, meals, mobility, and basic services.

Nia.one ties these services together through four products: Flow (a job marketplace), Studio (for housing and essentials), Tribe (for community and learning), and Rafiki (an AI assistant for navigation and support).

Impact & Growth: The startup claims to have onboarded over 3,000 workers across 50+ cities and claims to have a retention rate of around 85%. Buoyed by a recent $2.4 Mn fundraise, Nis.one now plans to expand its hubs, enhance AI capabilities, and scale its support stack.

With India’s gig economy expected to grow rapidly in the coming years, the startup is looking to play a key role in formalising and stabilising flexible work. But can Nia.one’s integrated platform become the blueprint for gig worker welfare in India?

Infographic Of The Day

India’s 10-minute economy is no longer an experiment, and the stakes are rising with each passing day. So, who is winning?