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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.

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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.

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.

Tracxn slips into losses in Q4 FY25 amid flat revenue

EntrackrEntrackr · 1m ago
Tracxn slips into losses in Q4 FY25 amid flat revenue
Medial

Data and research platform Tracxn announced its financial results for the fourth quarter of the last fiscal year (Q4 FY25) on Monday. The firm slipped into losses during the quarter, while its revenue grew by a mere 5% over the same period. Tracxn's revenue from operations stayed flat at Rs 21 crore in Q4 FY25, compared to Rs 20 crore in Q4 FY24, its financial statements sourced from the National Stock Exchange (NSE) show. For the full fiscal year (FY25), Tracxn’s operating revenue increased 2% to Rs 84.5 crore in FY25 from Rs 83 crore in FY24. Tracxn generated its entire operating revenue from subscription sales, offering access to its data and software. However, the Bengaluru-based firm did not provide a detailed revenue breakdown for the quarter. The company also made Rs 1.5 crore from non-operating sources which took Tracxn’s total revenue to Rs 22.7 crore in the fourth quarter. Meanwhile, for the full fiscal year (FY25), total income stood at Rs 90.36 crore. Employee benefits remained the largest cost center for Tracxn, accounting for 86% of its total expenditure. These expenses increased by 5.6% year-on-year, rising to Rs 19.36 crore in Q4 FY25 from Rs 17.77 crore in Q4 FY24. Overall, Tracxn's total costs grew by approximately 10%, reaching Rs 22 crore in Q4 FY25. For the fiscal year ending March 2025, total expenses increased to Rs 84 crore. The stagnant revenue and a nearly 10% increase in overall costs caused Tracxn to slip into losses. The company’s loss after tax stood at Rs 8 crore in Q4 FY25 from a profit of Rs 1.42 crore in Q4 FY24. However, the company reported a profit before tax of Rs 73 lakhs. Meanwhile, for the full fiscal year (FY25), its losses stood at Rs 9.5 crore. The company recently approved an ESOP grant of over 2 lakh shares, valued at Rs 41.6 lakh. As of the last trading session, Tracxn’s share price was Rs 63, giving the company a market cap of Rs 674 crore ($79 million).

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.

Lendingkart posts Rs 1,090 Cr revenue in FY24, profit slips

EntrackrEntrackr · 7m ago
Lendingkart posts Rs 1,090 Cr revenue in FY24, profit slips
Medial

Temasek’s Fullerton recently acquired the troubled fintech firm Lendingkart in a distress sale. The company’s valuation plummeted to around $100 million in the deal, down from its peak of $690 million. While the reasons behind this downfall may become clearer when the firm discloses its FY25 numbers, the company’s profit after tax (PAT) slipped 6% during the fiscal year ending March 2024. We will analyze the company’s expenses in detail in the second half of the story. For now, let’s focus on its revenue streams and their growth. Lendingkart’s revenue from operations increased by 36% to Rs 1,090 crore in FY24 from Rs 798 crore in FY23, its consolidated financial statement sourced from the Registrar of Companies (RoC) shows. Lendingkart is a non-banking finance company (NBFC) that provides working capital and business loans to SMEs across India. It offers loans with an average ticket size of Rs 5 lakh to Rs 6 lakh to MSMEs and has disbursed over Rs 18,700 crore to more than 300,000 businesses. Revenue from co-lending was the primary contributor, accounting for 54% of the operating revenue, which surged by 88% to Rs 591 crore in FY24. Revenue from interest on term loans shrank by 2.86% to Rs 407.81 crore FY24, while commission income spiked 34X to Rs 22.58 crore in FY24. It also made Rs 69.15 crore from other operating activities. The company generated another Rs 127 crore in FY24 from non operating activities which took its total revenue to Rs 1,217 crore in FY24. On the expense side, finance cost was the major factor, which increased by 16.82% to Rs 293.53 crore in FY24. Employee benefit expenses grew by 75.70% to Rs 199 crore while legal charges increased 58.25% to Rs 125.62 crore FY24. Overall, the firm’s total expenses spiked 49.4% to Rs 1,022.7 crore in FY24 from Rs 684.4 crore in FY23. Note: The company recorded Rs 171.67 crore in FY24 and Rs 67.12 crore in FY23 under impairment losses, these amounts have been excluded from the expense or profit calculations. The rising expenses on employee benefits took a toll on Lendingkart's profit which slipped by 6% to Rs 174.92 crore in FY24 from Rs 185.93 crore in FY23. Its ROCE and EBITDA margin stood at 23.33% and 44.39%, respectively. On a unit basis, the company spent Re 0.94 to earn a rupee in FY24. The Ahmedabad-based company reported Rs 768.5 crore in cash and bank balances and had a current asset of Rs 2,110 crore as of FY24. According to TheKredible, Lendingkart has raised a total of Rs 3,217 crore (approximately $452 million) in funding to date. Its leading investors include Temasek, Bertelsmann, Mayfield, and Saama Capital.

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.

CarDekho Group’s revenue slips due to closure of used car biz; InsuranceDekho shines

EntrackrEntrackr · 7m ago
CarDekho Group’s revenue slips due to closure of used car biz; InsuranceDekho shines
Medial

CarDekho Group, which operates platforms like CarDekho, InsuranceDekho, BikeDekho, PriceDekho, Rupyy.com, has posted a modest 3.5% drop in its revenue FY24. However, the Jaipur-based firm managed to cut down losses by 40% in the same period. CarDekho revenue from operations fell to Rs 2,250 crore in the fiscal year ending March 2024, from Rs 2,332 crore in FY23, its consolidated financial statements sourced from the Registrar of Companies show. The dip in revenue was due to the closure of the used car business, as explained by founder and CEO Amit Jain in a conversation with Entrackr. Meanwhile, the group’s insurance segment achieved remarkable growth, surging approximately 8X during the past fiscal year. The transaction business is CarDekho's largest revenue contributor, accounting for 41% of its total operating revenue. This includes performance-based advertisements for automakers, dealer-customer connections, and financial services for buyers. The segment grew by 16.5% in FY24, reaching Rs 930 crore. Income from insurance broking (InsuranceDekho - ID) emerged as the second largest revenue grocer for CarDekho which formed 33% of the group’s revenue. Income from ID surged 7.8X to Rs 743 crore in FY24. Advertising, digital marketing, the sale of used cars, and other allied services contributed Rs 384 crore, Rs 176 crore, and Rs 17 crore, respectively. The company also added Rs 143 crore of other income (non-operating), making a total revenue of Rs 2,393 crore in FY24. The PeakXV-backed-company allocated 26% of its total expenses to advertising and promotions, which fell 13.6% to Rs 700 crore in FY24. Employee benefits were another significant expense, holding steady at Rs 642 crore, including Rs 74 crore in ESOP costs (non cash in nature). With the hyper-growth in the insurance segment, the related expenditure spiked 37X to Rs 301 crore in FY24. CarDekho spent Rs 547 crore and Rs 177 crore on outsourcing manpower and purchase of old cars in FY24. Its legal, technology, travel, and other overheads took the overall to Rs 2,669 crore in FY24 from Rs 2,921 crore in FY23. Despite closing its used car retail business, the group's other segments performed well and managed to cut losses by 40% to Rs 340 crore in FY24, down from Rs 566 crore in FY23. Its ROCE and EBITDA margins improved to -9.2% and -9.1% respectively. Cardekho expense expense-to-earning ratio stood at Rs 1.19 in the previous fiscal. The IPO bound firm has total current assets of Rs 3,084 crore including the cash and bank balances of Rs 688 crore in FY24.

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