India, Nov. 14 -- Peak XV Partners marked the Pine Labs IPO with trays of celebratory cupcakes this week, a sweet touch to what has become one of the venture capital firm's most lucrative bets. The firm's early and sustained investment in the fintech company has now translated into a massive windfall, cementing Pine Labs as one of its standout successes.

Peak XV first backed Pine Labs in 2009 and later committed roughly $32-35 million in the company's major institutional round in 2014. Over the years, the firm has steadily monetised part of its holding, realising about $550 million through secondary transactions.

Ahead of the IPO, it still owned just over 20% of the company - a stake valued at around $570 million - and is expected to re...