India-based digital payments and merchant commerce firm Pine Labs has secured a $100m investment from the US-based Invesco Developing Markets Fund.

The investment comes as the firm aims to raise between $400m to $500m before its planned US stock market debut next year.

Pine Labs is expected to conclude the round in the next two to three months, Livemint reported citing people familiar with the matter.

The firm is said to be eyeing a valuation of up to $5bn through the financing.

In July this year, the firm announced a total round size of $600m and brought in a marquee set of new investors. The investment valued the company at $3.5bn.

Meanwhile, The Economic Times reported that Pine Labs has hired Wall Street investment banks Morgan Stanley and Goldman Sachs as advisors for its initial public offering (IPO).

Although the IPO is slated for next year, it may spill over to early 2023, the report said.

Pine Labs is backed by Sequoia Capital, Temasek Holdings, Actis, PayPal, and Mastercard among others.

The firm provides a range of in-store and doorstep payment solutions and BNPL offerings at the point of sale.

In April this year, it acquired Singapore-based loyalty cashback start-up Fave for $45m to foray into the consumer payments space.

Commenting on the Invesco-investment, Pine Labs CEO B. Amrish Rau said: “Over the last year, Pine Labs has made significant progress in its Offline to Online strategy in India and the direct-to-consumer play in Southeast Asia.

“Our full-stack approach to payments and merchant commerce has allowed us to grow in-month merchant partnerships by nearly 100% over the last year.

“We are excited to bring on board a marquee set of new investors in this round and appreciate the confidence they have placed on the Pine Labs business model and our growth momentum.”