M2P Fintech lands epic over $100 million

M2P has secured a blockbuster funding of approximately $101.8 million (Rs 850 crores) through a primary and secondary financing round which was held by Helios Investment Partners. M2P is an application programming interface (API) and plans to expand its market leadership in India with the help of this new funding.

Out of the total, $70 million were gained from primary investment, whereas the remaining amount had been raised through secondary investment. In accordance with the company, this mind-blowing funding has brought the company’s valuation to breakthrough Rs 6,550 crore which is approximately $790 million.

In October 2021, the firm raised $35 million in a Tiger Global C round. According to the company, it has raised revolutionary over $100 million since early 2021.

In addition to that, renowned institutions from Asia participated in Series D round in this recent funding along with Flourish Ventures which is an existing investor of the company. According to the company, Flourish Ventures have increased their stake in the company.

About M2P and its shares

M2P had been founded in 2014 by Madhusudanan R, Prabhu Rangarajan, Muthukumar and is an API infrastructure aiming to foster futuristic and customer-centered fintech solutions with the help of cutting-edge technology.

Before the funding round, Beenext was its biggest external stakeholder with 10.23%, then Tiger Global with 9.22% and Insight Partners with 6.44%. Co-founders Muthukumar Ayyakannu, Prabhu Rangarajan, and Madhusudanan R collectively owning to 34.03% of the company.

With the help of this, the businesses can offer their own branded financial service through partnerships with fintech companies, further enabling regulatory compliance- so that everything happens in order, with all the regulations being followed.

The company powers more than 200 banks and 300 lenders which are operating in over 30 markets- inclusive of MENA, Asia Pacific and Oceania regions.

The primary object of the company is the provide solutions and digital payments. It also aims to provide credit card issuance and other financial services which are personalized to the specific needs of local markets.

Operations and Acquisitions

The firm operates in enormous countries including the UAE, Australia, Bahrain, New Zealand, Egypt, the Philippines and Nepal, among others.

Apart from Tiger Global, M2P has made six additional acquisitions till date including Goals101, BSG ITSOFT and Syntizen.

The competitors of the company include Signzy, Decentro and Pine Labs owned by Setu.

Financial position

In the financial year 2023, the company’s operating revenue had risen up 2.26 times to Rs 440.7 crore, which is Rs 194.74 up from financial year 2022.

On the other hand, its losses have also increased drastically up to 3.35 times amounting to Rs 134.26 crore in 2023. The company has not filed its 2024 financial year results yet.

Future plans with the funding

As per the press release of the company, the funds raised out of the recent fundraise is set to be used in expanding international franchise, giving strong emphasis on Africa and to strengthen the company’s market leadership in India. As the African continent’s financial environment is drastically evolving, it is the next main growth edge for the company to offer vast potential for growth and development.

According to a separate resolution filed, the company has risen up its ESOP (Employee stock option pool) by adding 38,700 new options and bringing the total ESOP pool to 1,29,140 ESOP’s.

Conclusion

So, the company in short is set to invest the large funding in expanding its international franchise, emphasizing on majorly Africa and India. The company aims to provide its users a fantastic experience of going tech in digitalizing payments, credit card issuance and all types of other financial services.

The company is also focusing on its regulatory compliance which would further help other businesses to foster their financial services with the help of partnerships.

Read further about today’s funding news- Physics Wallah Lands $210 Million In Series B Funding, Valuation Reaches Mindblowing $2.8 Billion – 24 Khabre and SpiceJet Secures Major Transformative ₹3,000 Crore Boost Through QIP! – 24 Khabre