SUMMARY
- Taj Investment Holdings invests Rs 417.5 crore in M2P Fintech.
- M2P Fintech expanded its ESOP pool while co-founders own 34.03% of the company.
- M2P’s FY23 revenue rose to Rs 440.7 cr, but losses increased to Rs 134.26 cr.
Taj Investment Holdings has invested Rs 417.5 crore ($50 million) in M2P Fintech, formerly known as Yap, an application programming interface (API) infrastructure platform. The firm intends to use these funds to finance its working capital requirements as well as expansion.
Taj Investment Holdings hasn’t invested in any Indian startups before M2P Fintech. By a separate resolution the firm filed, M2P expanded its employee stock option pool (ESOP) by adding 38,700 new options, increasing the entire ESOP pool to 1,29,140 employee stock options.
Beenext held 10.23% of M2P’s external stakes before this fundraising round, followed by Tiger Global with 9.22% and Insight Partners with 6.44%. Together, co-founders Madhusudanan R, Prabhu Rangarajan, and Muthukumar Ayyakannu own 34.03% of the business. The startup was negotiating a $80 million round, of which $30 million was anticipated from secondary sales, as reported by Entrackr.
Through collaborations with fintech companies, M2P Fintech offers API architecture that enables enterprises to offer their own branded financial services while maintaining regulatory compliance. The business has operations in several nations, including Egypt, Bahrain, Nepal, the UAE, Australia, and New Zealand. With support from Tiger Global, M2P has acquired six companies thus far, including BSG ITSOFT, Syntizen, and Goals101.
Operating revenue for M2P increased 2.26 times to Rs 440.7 crore in FY23 from Rs 194.74 crore in FY22. In FY23, its losses also rose 3.35 times, at Rs 134.26 crore.
