M2P Fintech Secures $80M Funding to Boost API Infrastructure.

Bengaluru-based company M2P Fintech is closing a significant funding round with Insight Partners to boost its API infrastructure, supporting technological growth and expansion in international markets. Sources reveal that the Bengaluru-based Fintech company is finalizing an investment of $80 million from new and existing investors, marking its first major funding round in two and a half years.

Previously, M2P secured $56 million in an equity round led by Insight Partners, which valued the company at $650 million post-money.

The new funding round, spearheaded by a new investor with participation from current backers, including Insight Partners, is pivotal for M2P Fintech. This capital infusion will enhance the company’s technological infrastructure and accelerate growth in Indian and international markets, such as Nepal, UAE, Australia, New Zealand, the Philippines, Bahrain, and Egypt.

M2P Fintech Expansion and Compliance

M2P Fintech’s API platform enables businesses to offer branded financial services while ensuring regulatory compliance. This capability has positioned the company as a leader in the API infrastructure business, competing with key players like Setu, Signzy, and Decentro.

Sources close to the deal indicate that the new round of funding will value M2P Fintech between $880 million and $900 million post-money. The company has already received a term sheet, and the deal is expected to be publicly announced soon. However, M2P Fintech and Insight Partners have yet to respond to queries.

Strategic Growth and Financial Performance

M2P Fintech has raised INR 864 crore, with Beenext as the largest shareholder, holding over 13 percent of the company. Founders Madhusudhan R, Muthukumar A, and Prabhu R own more than 34 percent of the firm. The company has also strengthened its product offerings through strategic acquisitions, including Goals101, Syntizen, and BSG ITSOFT.

M2P Fintech has demonstrated strong financial growth, with operating revenues increasing 2.26 times to INR 440.7 crore in FY23 from INR 194.74 crore in FY22. This growth, however, also saw the company’s losses surge 3.35 times to INR 134.26 crore in FY23.

The $80 million funding round will further solidify M2P Fintech’s position in the competitive fintech landscape. With an expanded domestic and international footprint, the new investment will bolster its technological infrastructure and support rapid expansion across several markets, enhancing its leadership in API infrastructure.

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