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M2P Fintech to acquire Mad Street Den in distress sale

EntrackrEntrackr · 1y ago
M2P Fintech to acquire Mad Street Den in distress sale
Medial

M2P Fintech to acquire Mad Street Den in distress sale Digital banking infrastructure company M2P Fintech is all set to acquire Chennai-based AI startup Mad Street Den, sources aware of the development told Entrackr. Moneycontrol, which reported the development first, said that the deal is a mix of stock and cash. According to sources, M2P Fintech is acquiring Mad Street Den in a distress sale for approximately $10-15 million. The company has raised over $50 million to date, including a $30 million round in January 2023 from Alpha Wave and Peak XV (formerly Sequoia Capital). Founded in 2016 by Ashwini Asokan and Anand Chandrasekaran, Mad Street Den’s core product Vue.ai focuses on the retail segment to provide automation and inventory management solutions.

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

EntrackrEntrackr · 1y 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.

M2P Fintech’s losses widens over 90% in FY25; revenue crosses Rs 500 Cr

EntrackrEntrackr · 1d ago
M2P Fintech’s losses widens over 90% in FY25; revenue crosses Rs 500 Cr
Medial

M2P Fintech’s losses widens over 90% in FY25; revenue crosses Rs 500 Cr Banking infrastructure startup M2P Fintech reported a 33% year-on-year increase in its operating scale and crossed the Rs 500 crore threshold in FY25. However, the growth came at a steep cost which surged 90% during the last fiscal year. M2P Fintech’s revenue from operations grew to Rs 506 crore for the fiscal year ending March 2025 from Rs 382 crore in FY24, its annual consolidated financial statements sourced from the Registrar of Companies (RoC) show. M2P Fintech offers API infrastructure that allows businesses to launch their own branded financial services through partnerships with fintech firms, while ensuring regulatory compliance. The company operates in more than 30 markets across Asia Pacific, MENA, and Oceania, and claims to support over 200 banks and 300 lenders. Significantly, the Tiger Global-backed firm has not disclosed its revenue breakdown for the last fiscal year. It earns revenue from multiple streams, including API usage fees, card issuance and management fees, platform subscription charges, commissions from banking partnerships, lending solutions, cross-border forex services, and others. The company earned almost all of its revenue from the domestic market, with only Rs 5.7 crore coming from export services, despite operating in over 30 markets across the Asia Pacific, MENA, and Oceania regions. The firm also earned around Rs 25 crore from non-operating sources, recorded under miscellaneous income, which took its overall income to Rs 531 crore in the last fiscal year. For the SaaS firm, spending on technology, cloud services, and co-branding was the largest cost for the firm, around 41%, which doubled to Rs 325 crore in FY25 as compared to Rs 160 crore in FY24. The employee benefits expenses also rose 24% to Rs 311 crore, which includes a non-cash ESOP cost of Rs 40 crore. Legal, advertising, impairment, depreciation & amortization, travel, and other overhead expenses brought M2P's total costs to Rs 786 crore, a 49% year-on-year increase compared to Rs 528 crore in FY24. The company’s losses widened 91% to Rs 256 crore in the last fiscal, as technology-related costs doubled during the period, which caused overall expenses to rise faster than operating scale. On a unit level, the company spent Rs 1.55 to earn one rupee in FY25. M2P Fintech recorded a negative ROCE of -34.71% and an EBITDA margin of -44.07%. Its EBITDA (loss) stood at Rs 223 crore during the period. The Chennai-based company’s total current assets stood at Rs 774 crore, including Rs 395 crore in cash and bank balances as of March 2025. M2P has raised over $200 million to date, including $100 million in its Series D round through a mix of primary and secondary transactions led by Helios Investment Partners in September 2024. In March last year, the company also acquired Chennai-based Mad Street Den in a distress sale valued at around $10–15 million.

Here are India's biggest AI startups based on how much money they've raised

TechCrunchTechCrunch · 1y ago
Here are India's biggest AI startups based on how much money they've raised
Medial

India's AI startup ecosystem is reminiscent of the early days of SaaS in the country, with funding constraints but promising opportunities. Some Indian startups are focusing on integrating local language support into their AI models, catering to the growing demand from Indian consumers. Despite funding dropping by nearly 80% in 2023, investors are actively seeking AI startups in India to diversify their portfolios and address data sovereignty concerns. Key players in the Indian AI startup scene include Krutrim, Sarvam AI, Mad Street Den, Wysa, and Neysa Networks. Emerging startups to watch include Upliance AI, Scribble Data, Expertia AI, OnFinance, Helium, Soket Labs, Kissan AI, and Shorthills AI.

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