PC: IndiaTechDesk
A heavily talked-about Chennai-based API infrastructure platform M2P Fintech, which was earlier known as Yap, has raised Rs 417.5 crore ($50 million) from Taj Investment Holdings, according to a regulatory filing secured from RoC. The company had issued Series D preference shares for the same amount at the behest of the board, a said document stated.
Funding from the investment house of Taj will further strengthen M2P’s trajectory of growth and support its working capital, thereby positioning it well in comparison to other fintech companies. Interestingly, after allotment, the estimated valuation of M2P is around $800 million, which indicates both investor and industry confidence as well as the potential attributed to the company.
This is the first investment for Taj Investment Holdings in the Indian startup ecosystem, with limited details on the portfolio investments made so far by this fund. Further efforts are being continued to collate additional details, and any further details or updates will be provided once ascertained. This will further add relevance to the funding round for M2P as well as the strategic direction.
This strategic endeavor by M2P Fintech further added 38,700 fresh options to the employee stock option pool, bringing the total to 1,29,140 employee stock options. This deal showcases how M2P is trying to build an inspired and agile workforce while aligning the interests of employees with the growth aspirations of the organization in the long term.
Significant investors dominated the shareholder structure of M2P before this current funding round, with Beenext leading at an external stake of 10.23%, followed by Tiger Global at 9.22% and Insight Partners at 6.44%. Co-founders Muthukumar Ayyakannu, Prabhu Rangarajan, and Madhusudanan R collectively own 34.03% of the firm, adding to the founders’ intrinsic involvement in M2P’s history and achievements.
According to sources close to the matter, M2P Fintech was in advanced talks to bag a huge $80 million fund-raise wherein a part of it would be used for secondary sale. Earlier this month, Entrackr had mentioned its chances of fundraising, which prepared the ground for the spate of investments into the company and now strategic expansion plans.
M2P Fintech operates in Nepal, the UAE, Australia, New Zealand, the Philippines, Bahrain, and Egypt, among others; the company offers API infrastructure solutions that allow businesses to develop proprietary financial services in collaboration with fintech companies with regulatory compliance and operational efficiency.
With the help of Tiger Global and the history of strategic acquisitions like Goals101, Syntizen, and BSG ITSOFT, M2P Fintech has demonstrated commitment towards innovation and expansion. While the increase in losses in FY23, which has been paired with the growth in operating revenue, represents challenges in its growth and sustainability, M2, however, continues to invest in sustainable growth while fortifying its position in the competitive API infrastructure sector.
Competing players, such as Setu under owner Pine Labs, Signzy, and Decentro, the associated competitions set against this backdrop continue to find M2P Fintech carving a niche for itself through strategic investments, technological advancement, and customer-centric orientation. The recent funding round and expansion plans are testaments to M2P’s resilience, adaptability, and ambition in driving impactful change in the API infrastructure space.
