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M2P Fintech raises debt funding from Anicut Capital

EntrackrEntrackr · 1y ago
M2P Fintech raises debt funding from Anicut Capital
Medial

Digital banking infrastructure company M2P Fintech has raised Rs 35 crore debt from Anicut Capital. This appears to be the first debt round for the Chennai-based company. The board at M2P Fintech has passed a resolution to issue 350 NCD (non-convertible debentures) at an issue price of Rs 10,00,000 each to raise Rs 35 crore, its regulatory filing sourced from RoC shows. In January 2022, the company raised $56 million in an equity round led by Insight Partners at a valuation of $600 million M2P has been acquiring companies at regular intervals in what appears to be aimed at strengthening its API infrastructure. In December last year, it acquired Goals101. It also took over identity validation startup Syntizen in July last year. M2P also offered a partial exit to its early backer 8i Ventures in June 2022. The early-stage investor claimed to have scored 36X multiple on its original investment with an IRR of 415% over two years. While the company is yet to disclose its FY23 numbers, its revenue from operations spiked 4.6X to Rs 194 crore in FY22. According to startup data intelligence platform TheKredible, its losses ballooned 6.2X to Rs 41 crore during the said fiscal year from Rs 6.6 crore in FY21.

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Exclusive: M2P Fintech raises $50 Mn from Taj Investment Holdings

EntrackrEntrackr · 10m ago
Exclusive: M2P Fintech raises $50 Mn from Taj Investment Holdings
Medial

Application programming interface (API) infrastructure platform M2P Fintech (formerly Yap) has raised Rs 417.5 crore ($50 million) from new investor Taj Investment Holdings. The board at M2P passed a resolution to issue and offer Series D preference shares for this amount, according to regulatory filings accessed by Entrackr from the Registrar of Companies (RoC). M2P plans to utilize these funds for expansion and to meet its working capital needs. According to startup data intelligence platform TheKredible, the Chennai-based company is valued at around $800 million post-allotment. Interestingly, Taj Investment Holdings appears to have never invested in any Indian startup before M2P. Entrackr was unable to verify further details about the fund. We have reached out to M2P for comment and will update the story if they respond. Additionally, M2P has increased its employee stock option pool (ESOP) by adding 38,700 new options, bringing the total ESOP pool to 1,29,140 employee stock options, according to a separate resolution filed by the company. Prior to this funding round, Beenext was M2P’s largest external stakeholder, holding 10.23%, followed by Tiger Global with 9.22%, and Insight Partners with 6.44%. Co-founders Muthukumar Ayyakannu, Prabhu Rangarajan, and Madhusudanan R collectively own 34.03% of the company. M2P Fintech was reportedly in negotiations for an $80 million round, with $30 million expected from secondary sales. Entrackr exclusively reported on the potential fundraise in July. M2P Fintech provides API infrastructure that enables businesses to offer their own branded financial services through partnerships with fintech companies while ensuring regulatory compliance. The company operates in several countries, including Nepal, the UAE, Australia, New Zealand, the Philippines, Bahrain, and Egypt, among others. Backed by Tiger Global, M2P has also made six acquisitions to date, including Goals101, Syntizen, and BSG ITSOFT. In FY23, M2P’s operating revenue surged 2.26X to Rs 440.7 crore, up from Rs 194.74 crore in FY22. However, its losses also increased 3.35X, amounting to Rs 134.26 crore in FY23. The company has yet to file its FY24 results. In the competitive API infrastructure space, M2P Fintech faces rivals such as Pine Labs-owned Setu, Signzy, and Decentro.

M2P Fintech posts Rs 440 Cr revenue in FY23, losses mount 3.35X

EntrackrEntrackr · 1y ago
M2P Fintech posts Rs 440 Cr revenue in FY23, losses mount 3.35X
Medial

Application programming interface (API) infrastructure platform M2P Fintech (formerly Yap), registered a remarkable 10.5X increase in its operating scale in the last two reported fiscal years, zooming to Rs 440.7 crore in FY23 from Rs 41.89 crore in FY21. On a year-on-year basis, M2P’s revenue from operations surged 2.26X to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22, its consolidated financial statements filed with the Registrar of Companies show. M2P Fintech provides core banking cum loan management system stack and payment tools among others. While payment solutions form 60% of its revenues, the rest of income generated from core banking biz and value added services (VAS). It claims that its solutions are being used by 1,200 firms including banks and fintechs During FY23, the company made money by providing API services, handling payment infrastructure contracts, and processing card transactions. Collection from these services spiked 2.26X to Rs 440.7 crore in FY23 from Rs 194.74 in FY22. M2P also booked an income of Rs 47.17 crore from long-term investments and net change in FVTPL (non-operating income) which pushed its total revenue of Rs 487.87 in FY23. Moving to its cost breakup, technology, card processing and co-branding expenses accounted for 58.92% of the total expenditure. This cost shot up almost 2.2X to Rs 367.23 crore in FY23. The company also burnt Rs 188.28 crore on employee benefits whereas legal-professional fees and traveling conveyance collectively cost Rs 29.28 crore in the fiscal year ending March 2023. Other notable expenses including advertising took M2P’s total expenditure to Rs 623.3 crore in FY23. As the firm prioritized growth, its losses also mounted 3.35X to Rs 134.26 crore in FY23 from Rs 40.08 crore in FY22. When it comes to ratios, its EBITDA margin and ROCE worsened to -26% and -22.5%, respectively. On a unit level, M2P Fintech spent Rs 1.41 to earn a rupee in FY23. FY22-FY23 FY22 FY23 EBITDA Margin -17% -22.5% Expense/₹ of Op Revenue ₹1.26 ₹1.41 ROCE -7% -26% As per startup data intelligence platform Thekredible, M2P Fintech has raised debt funding of Rs 35 crore from Anicut capital. Beenext is the largest stakeholder with 13.24% while Tiger Global and Insight partners hold 8.91% and 6.48%, respectively. In January 2022, the Bengaluru-based company raised $56 million in an equity round led by Insight Partners at a valuation of $600 million.

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