Application Programming Interface (API) infrastructure company M2P Fintech has raised Rs 850 crore (around $102 million) led by Africa-based Helios Investment Partners through a mix of primary and secondary share capital. The new round will take the company’s valuation to around $800 million.
The funding comes when investment momentum in India has picked up, with venture capitalists signing large checks for startups, especially in the fintech space. Helios is investing close to $50 million in this round, Madhusudanan, cofounder of M2P told Moneycontrol in an interaction.
The round also saw participation from existing investors including Flourish Ventures as well as a few Asia-based bankers. The company’s early-stage investors including BeeNext will be selling stakes in the round, Madhusudanan added.
“We had a bunch of angels who came in very early and they will be taking an exit in this round like BeeNext and others,” Madhusudanan said.
The firm will be utilizing the fund towards newer international market expansion, inorganic growth and hiring. The funds will also be utilized to cement M2P's presence in Africa, the firm said in a statement.
“We will continue to chase inorganic operations. More than 40% of our revenue came from international markets and we will look at expand this. We also look at adding more than 10% workforce,” he said.
Previously known as Yap, the company was founded in 2014 by Madhusudanan R, Muthukumar A and Prabhu R. Headquartered in Chennai, M2P Fintech is a API infrastructure platform that enables businesses in the banking, financial services, and fintech sectors to launch and scale various digital financial services.
It provides APIs that allow companies to integrate with banks, payment networks, and other financial institutions.
Speaking about valuation, the cofounder said that there have been some corrections in the market and the firm is looking to clock $1 billion revenue as against chasing $1 billion of valuation.
“There is a big reset on valuation post the funding winter but today the stage we are in, we are looking at public markets in the next 2-3 years. We went through a business model reorientation and someone needs to underwrite this. We are now thinking of how do we get to $1 billion revenue,” the cofounder said.
M2P has a market presence in India, Nepal, the United Arab Emirates, Australia, New Zealand, the Philippines, Bahrain, and Egypt. The company plans to further expand its footprint across the US in the next one year.
The company has also made significant acquisitions in the past. In December of 2023, the firm acquired transaction behavioural intelligence startup Goals101 for Rs 250 crores. In 2022, it acquired a firm called Syntizen, Finflux and BSG, according the company’s website.
M2P’s revenue from operations went up 2.26 times to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22. However, the company’s losses expanded to Rs 134 crores as against Rs 40 crores in FY23.
Madhusudanan said that the firm has turned PAT positive as of FY25.
“We do not need capital to keep our lights on, last few quarters we have been operationally profitable and we will be FY25 PAT positive too," Madhusudanan said.
The firm raised $56 million in its Series C1 round in 2022 led by New York-based venture capital firm Insight Partners with participation from MUFG Innovation Partners, a CVC company of Mitsubishi UFJ Financial Group, Inc. (MUFG).
In fact, it was the company's third fundraise in less than a year that took its valuation to $600 million, up from the $335 million valuation during its Series C round in October 2021. Till date, the firm has raised more than 200 million in funding.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
