Pine Labs Ltd., a digital payments provider in India, plans to raise as much as $700 million from an initial public offering in the second half of October, according to people familiar with the matter.

The company, backed by Mastercard Inc. and PayPal Holdings Inc., has started roadshows for the planned initial share sale, the people said, asking not to be identified as the information is private. It cut down its size from a $1 billion targeted earlier, after existing investors scaled back their offer-for-sale portion, they said.

The offering comes as the government’s digitization push fuels a boom in the financial technology space and the primary market sees a surge in listings. It includes a fresh issue of shares worth 26 billion rupees ($295 million) and a sale of 147.8 million shares by the founder and investors, which include Peak XV Partners Pine Investment Holdings and Invesco Investment Funds.

Deliberations are ongoing and details such as timing and the IPO size could still change, the people said.

A representative for Pine Labs didn’t respond to requests for comments.

Pine Labs provides payment solutions, including point-of-sale terminals, and operates in India as well as international markets such as Singapore, Malaysia and the UAE. It reported a loss of 1.9 billion rupees on a revenue of 13.4 billion rupees in the year ended March 2024, according to the filing.

The company filed a draft prospectus with India’s market regulator on June 25 and got its approval this month.

Axis Bank Ltd., along with the local units of Morgan Stanley, Citigroup Inc., JPMorgan Chase & Co. and Jefferies Financial Group Inc., are advising on the IPO.

–By Rajesh Mascarenhas and Baiju Kalesh (Bloomberg)