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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.

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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.

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.

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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