🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥
Login

News on Medial

M2P Fintech raises over $100 Mn in primary and secondary funding

EntrackrEntrackr · 9m ago
M2P Fintech raises over $100 Mn in primary and secondary funding
Medial

Application programming interface (API) infrastructure platform M2P Fintech has raised Rs 850 crore (around $101.8 million) through a primary and secondary financing round led by Helios Investment Partners. The Series D round also saw participation from marquee banks across Asia, with existing investor Flourish Ventures doubling down on their investment in the company. Of the total amount, $70 million came from primary investment, while the remaining was raised through secondary transactions. According to the company, this round has brought its valuation to Rs 6,550 crore (approximately $790 million). Entrackr was first to report about the M2P Fintech’s new fundraise, providing a detailed break-up and crucial insights including valuation. The funds will be utilized to cement M2P’s market leadership in India, besides helping grow its international franchise, particularly in Africa, the company said in a press release. Africa now stands as M2P’s next major growth frontier, presenting vast potential due to the continent’s rapidly evolving financial ecosystem. M2P Fintech provides API infrastructure that enables businesses to offer their own branded financial services through partnerships with fintech companies, ensuring regulatory compliance. Operating in over 30 markets, including Asia Pacific, MENA, and Oceania regions, M2P Fintech powers more than 200 banks and 300 lenders. The firm aims to deliver “Bank in a Box” solutions alongside digital payments, credit card issuance, and other financial services customized to meet the unique demands of local markets, the release added. While M2P has yet to disclose FY24 results, its 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. Helios Investment Partners, the lead investor, is a private investment firm focused on Africa, managing over $3 billion in assets. The firm is led and managed by an African team with offices in London, Lagos, and other locations. The investment firm has invested in M2P through an investment vehicle called Taj Investment Holdings.

3

Related News

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

EntrackrEntrackr · 9m 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.

Exclusive: M2P Fintech to raise $80 Mn at $900 Mn valuation

EntrackrEntrackr · 11m ago
Exclusive: M2P Fintech to raise $80 Mn at $900 Mn valuation
Medial

Application programming interface (API) infrastructure platform M2P Fintech (formerly Yap) is in the final stage to raise a new round from new and existing investors, three sources aware of the details told Entrackr. The new round will come for the Bengaluru-based company after two and a half years. It raised $56 million in an equity round led by Insight Partners at a valuation of $650 million (post-money). “M2P is closing a $80 million new round of funding led by a new investor. Existing investors including Insight Partners are likely to join the round,” said one of the sources requesting anonymity. Sources assert that funding will be used to beef up tech infrastructure and accelerate growth pedal in India and overseas markets among others. For the uninitiated, M2P Fintech’s API enables businesses to offer their own branded financial services through partnerships with fintech companies while ensuring regulatory compliance. Apart from India, it operates in Nepal, UAE, Australia, New Zealand, the Philippines, Bahrain and Egypt among several other countries. “M2P will be valued at around $880 to $900 million (post-money) in the new round,” said another source requesting anonymity. “The company has already received the term sheet and the deal is set to be public soon.” Queries sent to M2P Fintech and Insight Partners did not elicit an immediate response. To strengthen its offerings, the Tiger Global-backed firm has acquired six companies to date including Goals101, Syntizen and BSG ITSOFT. According to startup data intelligence platform TheKredible, M2P has raised Rs 864 crore till date. Beenext is the largest stakeholder in the company with over 13% holding. Its co-founders Madhusudhan R, Muthukumar A and Prabhu R collectively own 34% of the firm. M2P is yet to disclose its FY24 numbers but its operating revenue surged 2.26X to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22. The growth triggered the firm’s losses by 3.35X to Rs 134.26 crore in FY23. M2P Fintech is a leader in the API infrastructure business which counts Setu, Signzy and Decentro as other key players.

M2P Fintech revenue slips over 13% in FY24, losses remain unchanged

EntrackrEntrackr · 4m ago
M2P Fintech revenue slips over 13% in FY24, losses remain unchanged
Medial

M2P Fintech revenue slips over 13% in FY24, losses remain unchanged M2P Fintech provides API infrastructure that enables businesses to offer their own branded financial services through partnerships with fintech companies, ensuring regulatory compliance. Banking infrastructure startup M2P Fintech struggled to grow in FY24, in contrast to FY23, when its scale more than doubled. The company's operating revenue declined by over 13% for the fiscal year ending March 2024, while its losses remained unchanged during the same period. M2P’s revenue from operations decreased 13.4% to Rs 382 crore in FY24 from Rs 441 crore in FY23, its annual consolidated financial statements sourced from the Registrar of Companies (RoC) show. M2P Fintech provides API infrastructure that enables businesses to offer their own branded financial services through partnerships with fintech companies, ensuring regulatory compliance. Operating in over 30 markets, including Asia Pacific, MENA, and Oceania regions, M2P Fintech claims to power more than 200 banks and 300 lenders. The Tiger Global-backed company has not disclosed a revenue breakdown for the last fiscal year. M2P Fintech generates income from multiple sources, including API usage fees, card issuance and management fees, platform subscription fees, commissions from banking partnerships, and cross-border forex services. The company states that it operates in 30 markets across the Asia Pacific, MENA, and Oceania regions. However, its export income stood at only Rs 4.6 crore, marking a steep 76.2% decline from Rs 19.3 crore in FY23. For the SaaS firm, employee benefits remained the largest cost center, accounting for 47.5% of total expenses. This expense rose by 33.5% to Rs 251 crore in FY24, including a non-cash ESOP cost of Rs 36 crore. With a decline in scale, spending on technology, cloud services, and co-branding dropped by 56.4% to Rs 160 crore in FY24. Legal, advertising, impairment, travel, and other overhead expenses brought M2P's total costs to Rs 528 crore, marking a 15.2% decline compared to FY23. Despite a 13.4% decline in scale, a 56.4% reduction in technology and related costs helped M2P Fintech contain its losses at Rs 134 crore in FY24, maintaining a similar level to FY23. On a unit level, the company spent Rs 1.38 to earn a rupee in FY24. By the end of FY24, M2P Fintech recorded a negative ROCE of -28.23% and an EBITDA margin of -22.51%. Its total current assets stood at Rs 318 crore, including Rs 78 crore in cash and bank balances as of March 2024. M2P has raised over $200 million to date including $100 million in its Series D round in a mix of primary and secondary led by Helios Investment Partners last year. According to the startup data intelligence platform TheKredible, Beenext is the largest external stakeholder followed by Tiger Global and Helios Partners. On Tuesday, the company also acquired Chennai-based Mad Street Den in a deal worth around $10-15 million. The deal has been cited as a distress sale considering Mad Street Den’s inadequate funding for future growth. M2P’s liquidity situation has clearly been the decider in this acquisition, besides hopes to use the assets from Mad Street Den to add a layer of AI and efficiency to its own offerings. Thus, with a lower balance sheet impact in terms of goodwill costs, what remains to be seen is if the acquisition will hasten its own much needed improvement in margins and a divisive return towards growth and profitability.

Exclusive: Whatfix bags $100 Mn in primary and secondary capital

EntrackrEntrackr · 9m ago
Exclusive: Whatfix bags $100 Mn in primary and secondary capital
Medial

SaaS-based digital adoption solution provider Whatfix has scooped nearly $100 million in primary and secondary funding led by Sweet Nectar Investments (Warburg Pincus) and SoftBank. With this, the Bengaluru-based company has marked its first funding round in the last three years. The board at Whatfix has passed a special resolution to issue 13,201 Series E compulsory convertible preference shares (CCPS) at an issue price of Rs 2,24,788.44 per share to raise Rs 296.74 crore in primary capital, the company’s regulatory filings with the Registrar of Companies show. Additionally, the transaction also includes secondary funding worth nearly Rs 530 crore, the filings reveal. Whatfix aims to use the primary proceeds to expand and grow the business. Sweet Nectar Investments (Warburg Pincus) led the round with Rs 615 crore (Rs 271.7 crore primary and Rs 343.2 crore secondary) while the company’s existing backer SoftBank poured in Rs 210.5 crore (Rs 25 crore primary and Rs 185.5 crore secondary) funding. The secondary funding has been extracted from taking the same issue price under consideration. However, the transaction could also have taken place at a discount rate which reduces the overall amount raised. As per the startup intelligence platform TheKredible, Whatfix has been valued at around Rs 6,871 crore or $820-830 million (post-money). It has raised over $140 million before the fresh funding round. In June, the Economic Times reported that Whatfix is in talks to raise a new round which will see partial exits of early investors Helion Venture Partners and Eight Roads Ventures. Post allotment of the round, SoftBank increased its stake to 15.51% while Warburg Pincus’ Sweet Nectar Investments acquired 8.94% shares in the company (including the secondary transaction). Queries sent to Whatfix did not elicit an immediate response. Founded by Khadim Batti and Vara Kumar, Whatfix provides in-app guidance and performance support for web applications and software products. Its tools can be used by large companies and organizations, and integrated into their own apps to help guide the workforce in using them more efficiently. Whatfix recorded a 65.7% growth in revenue from operations to Rs 285 crore while its losses also went up 31.2% to Rs 328 crore in FY23. Importantly, Whatfix generated the entire revenue from global markets: America, Europe, Asia Pacific, and the Middle East region. About 61% of the revenue emerged from the US followed by Europe. The company is yet to reveal its FY24 numbers.

Download the medial app to read full posts, comements and news.