SUMMARY
- M2P Fintech has secured Rs 850 crore in primary and secondary round led by Helios Investment Partners.
- The funds are set to be used to solidify M2P’s position in the Indian market, in addition to support its expansion into international markets.
- The Series D round also witnessed participation from leading banks across Asia.
Updated: September 24, 2024
Application Programming Interface (API) infrastructure platform M2P Fintech has secured Rs 850 crore (approximately $101.8 million) in primary and secondary round led by Helios Investment Partners.
The Series D round also witnessed participation from leading banks across Asia, with Flourish Ventures, an existing investor, doubling down on its investment. The total capital raised, $70 million from primary investors and the remainder from secondary transactions, has taken the company’s valuation to an Rs 6,550 crore (approximately $790 million), as disclosed by the company.
The funds are set to be used to solidify M2P’s position in the Indian market, in addition to support its expansion into international markets, with a particular focus on Africa. The company views Africa as a significant growth opportunity, given the continent’s rapidly developing financial landscape.
M2P Fintech specializes in providing API infrastructure that empowers businesses to offer their proprietary financial services through strategic partnerships with fintech companies, ensuring adherence to regulatory standards. Operating across over 30 markets, including the Asia Pacific, Middle East, and Oceania regions, M2P Fintech serves more than 200 banks and 300 lenders.
The firm aims for “Bank in a Box” solutions, which include digital payment services, credit card issuance, and other personalized financial services designed to meet the specific needs of local markets, as mentioned in the press release.
Helios Investment Partners, the primary investor in this round, is a private investment firm with a focus on Africa, managing over $3 billion in assets. Led by an African team with offices in London and Lagos, among others, Helios Investment Partners has invested in M2P through its investment vehicle, Taj Investment Holdings.
Original: September 18, 2024
As fintech companies are leading the technological advancements, facilitating the transformation of the financial services ecosystem, Chennai-based M2P Fintech has initiated discussions with a leading private equity firm for a new fundraising campaign.
According to Arc, the B2B fintech startup is engaged in talks with Helios Investment Partners to secure approximately $80 million in new funding round. This deal is anticipated to include around $50 million (Rs 419 crore) in primary investments and $30 million (Rs 251 crore) in secondary investments.
Moreover, the report suggests that this fundraising round is set to significantly elevate M2P’s valuation, potentially reaching $800 million (Rs 6,704 crore), making it close to a unicorn status.
In addition to securing new capital, M2P is also exploring opportunities to attract additional investors to its capital structure, including its existing investors in this fundraising round.
M2P has established strategic partnerships with prominent investors such as Insight Partners and Tiger Global, who led its Series C-1 round in 2021. The company also boasts significant support from investors like Beennext, Flourish Ventures, and Omidyar, with the founders maintaining control over over 40% of the company.
Founded in 2014 by Muthukumar A, Prabhu R, and Madhusudanan R, M2P specializes in providing fintech API solutions to clients such as slice, CRED, Ola, and Razorpay. The company offers a comprehensive suite of solutions across the spectrum of payments, lending, and banking.
From FY22 to mid-2023, M2P successfully raised capital in multiple tranches as part of its Series C-1 fundraising campaign. The company has indicated its intention to utilize these funds to enhance its technological capabilities, expand its team, and accelerate its global expansion efforts.
In September 2022, M2P received an investment of $2.7 million from a leading American multinational financial services provider, Visa.
Despite a more than threefold increase in consolidated net loss to Rs 134.3 crore in FY23 from Rs 40.1 crore in FY22, the company’s financial performance was strengthened by an increase in operating revenue, which rose by over 126% to Rs 440.7 crore from Rs 194.7 crore in the same period.
